Momentum might be an elusive quality, yet it is also pretty easy to spot. Right now, it is clearly on BioNano Genomics’ (BNGO) side. In December, shares of the life sciences company have accumulated a mighty 328%.
Evidently, investors are buying into the cytogenetics specialist’s steady stream of positive developments.
On Monday, the company disclosed that its genome mapping platform Saphyr has been accredited in the US by the College of American Pathologists. The platform will be used by Bionano’s customer Praxis Genomics, marking it as the first company to offer a laboratory developed test (LDT) utilizing whole genome analysis.
Saphyr’s optical genome mapping is an alternative to traditional cytogenetic methods and Maxim analyst Jason McCarthy thinks it could be a game changer.
“Digital cytogenetics is one of the areas where Saphyr has the potential to change the clinical diagnostic landscape,” the 5-star analyst said. “Current methods are labor and time intensive, and therefore costly. Saphyr offers a more efficient and streamlined alternative as well as potentially improved diagnostic yield. As more LDTs are developed, we anticipate that adoption for Saphyr should increase, driving revenue for Bionano.”
While the accreditation is the first of its kind in the U.S., in Europe, whole genome clinical tests are already in progress across several applications including inherited genetic disorders and leukemia.
The news followed the recent publication of an article which further highlighted Saphyr’s qualities. In a comparison test, PacBio’s HiFi chemistry was only able to detect 72% of the large SVs (structural variants) detected by Saphyr.
All in all, McCarthy reiterated a Buy rating on BNGO shares along with a $2 price target. Due to Bionano’s latest surge, the figure indicates a 5% downside from current levels. (To watch McCarthy’s track record, click here)
Two other analysts recently posted BNGO reviews, with one saying Buy and the other recommending a Hold, adding up to a Moderate Buy consensus rating. That said, it is hard to keep up with the current speed of the share gains, and the $1.42 average price target, suggests downside of 32%. (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.
