Bionano (BNGO) is a company whose profile has grown immensely over the past year. The interest has been down to the impact its genome mapping system Saphyr could have on the cytogenetics space. The company’s latest quarterly results gave the bulls enough to smile about.
In the second quarter, Bionano delivered revenue of $3.86 million, up by 227.1% year-over-year while beating the consensus estimate by $0.34 million.
The company shipped 13 Saphyr systems in Q2, vs. just 6 systems in 2Q20. Sales of 2,742 nanochannel array flow cells also amounted to the best ever quarterly performance and represented a 93% year-over-year increase.
“With 121 Saphyr installments as of 2Q21,” Oppenheimer’s Kevin DeGeeter said, “We view BNGO as on track to reach 150 installments by year-end 2021.”
One dark spot involved a widening net loss, from $8.07 million in the same period last year to $18.79 million, resulting in EPS of ($0.06) worse than DeGeeter’s ($0.05) estimate, and mainly due to commercial expansion resulting in higher SG&A spend.
DeGeeter doesn’t expect new product launches in 3Q21 to “materially impact revenue” but there are other catalysts further down the line, including an interim data readout from the paediatric clinical study in 4Q21, and an early prototype of the next-gen optical mapping system in Q4 or early next year, with the product’s development anticipated to be complete by mid 2022.
To support higher throughput of 70,000 samples annually and lower COGS, the new system will boast improved components with an updated informatics workflow. Some newer add-on system updates, such as Saphyr Assure, an AI-driven quality control system, will also be included in the next-gen system.
Down to business, what does it all mean for investors? DeGeeter reiterated an Outperform (i.e., Buy) rating for the shares, backed by a $14 price target. Should everything go according to the analyst’s plan, shares will be adding ~127% of muscle over the next 12 months. (To watch DeGeeter’s track record, click here)
Bionano shares are up by 100% year-to-date, and that is despite pulling back sharply since the highs reached earlier this year. All recent reviews indicate the shares are destined to push ahead once again; the $11.50 average price target suggests the stock is undervalued by 86%, while the Strong Buy consensus rating is based on Buys only – 4, in total. (See BNGO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
