Bionano (BNGO) stock currently sits 53% below the all-time high achieved back in February. It says a lot about the kind of year this cytogenetics disruptor is having, that despite the massive drop, the shares are still up by 138% year-to-date.
Such a decline, however, merits the obvious question: Can Bionano claw back those gains? It can indeed, according to Oppenheimer’s Kevin DeGeeter. After a recent investor meeting with the company’s management, the 5-star analyst remains firmly in the BNGO bull corner.
The 5-star analyst reiterated an Outperform rating on BNGO shares, backed by a $14 price target. DeGeeter, therefore, sees the stock gaining 81% over the next 12 months. (To watch DeGeeter’s track record, click here)
So, what are the takeaways from the conversations?
Well, for one, the company is “comfortable” with the consensus revenue estimates. The Street is expecting 2Q21 and 2021 sales of $3.5 million and $16 million, respectively, while DeGeeter’s forecast calls for $3.3 million and $15.6 million. Bionano’s management said current operating trends are “consistent” with 2021 forecasts, although the company did not comment on Q2 specifically.
The company did provide “color” on its genomic mapping platform Saphyr’s installed base, noting the latest 15 installments are “clinically driven and command higher sample volume, trending toward $100–150K in reagent sales annually.”
The company is also in the process of enrolling patients for “real world studies.” Bionano is collaborating with 3 sites, where over 5,000 patients will participate in 5 different studies – pre-natal, post-natal, solid tumors, lymphomas, and leukemia – each numbering 1,000 participants. The post-natal (constitutional disorders) is currently at the the most advanced stage with three sites on board and the potential to enroll 30–50% of the participants by the end of the year.
As well as “validating” assays for each of the five groups, management talked about measures to “validate different sample collection modalities, including amniocytes, buccal swabs, etc.” DeGeeter says flexibility in sample collection “may allow BNGO to expand Saphyr-based assay menu for clinical diagnostics.”
Finally, the company anticipates an interim update from the constitutional disorders study in the year’s second half, which prior to a peer-review process, DeGeeter thinks the data will be published online.
Turning now to the rest of the Street, where Bionano’s Strong Buy consensus rating is based on a unanimous 4 Buys. The average price target is also a bullish one; at $11.5, shares are expected to appreciate by 50% in the year ahead. (See Bionano 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.
