Bionano: Prenatal Testing Offers Another Opportunity for Saphyr, Says Analyst

The spotlight has shone on Bionano Genomics (BNGO) in 2021. The life sciences company is getting a lot of attention due to Saphyr, its genome imaging system, and the role it can play in transforming the cytogenetics space.

Oppenheimer’s Kevin DeGeeter says his positive outlook for the company is partly based on Saphyr’s potential to impact other markets beyond cytogenetics for hematologic malignancies. Ones where the use of microarrays, FSH and karyotyping also “results in long and expensive analytical decision trees.”

A recent study published in a peer-reviewed journal, gives credence to DeGeeter’s ambitions for Bionano.

“We view publication this week of a commentary in Genes as providing an important update on development of optical genome mapping (OGM) for one of the larger new market opportunities: prenatal cytogenetics,” the 5-star analyst said. “Takeaways from paper include: 1) potential to replace microarrays, FSH and karyotyping in reflex setting following NIPT; 2) four-day turnaround time for OGM; and 3) potential for better coverage of complex structural variants (SVs) including Fragile X expansions.”

Non-invasive prenatal screening tests (NIPT) are set to become a common place screening tool for pregnancies all over the world. Following a positive NIPT screen or for high-risk pregnancies with an abnormal ultrasound, OGM could bring to the table a high-throughput, in-depth and high-resolution follow up genome analysis.Saphyr’s ability to accurately detect aneuploidies, sex chromosome anomalies, microdeletion and microduplication syndromes and repeat expansion and contraction disorders were highlighted by the study’s authors.

The addition of prenatal testing could also add an extra revenue stream; DeGeeter “conservatively estimates” this market could add more than 500,000 cases, which equates to an extra $250 million to Saphyr’s TAM (total addressable market).

Despite the stock gaining 155% on a year-to-date basis, BNGO shares currently sit 47% beneath the giddy heights notched in mid-February. DeGeeter excepts Bionano to claw back those gains; Going by the $15 price target, the shares will add 106% of muscle over the next 12 months. (To watch DeGeeter’s track record, click here)

DeGeeter’s colleagues are reading from the same hymn sheet; both other recent reviews say Buy, all coalescing to a Strong Buy consensus rating. The average price target currently stands at $14.33, representing possible upside of 97%. (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.