10x Genomics (TXG – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Tejas Savant from Morgan Stanley maintained a Buy rating on the stock and has a $18.00 price target.
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Tejas Savant has given his Buy rating due to a combination of factors that highlight the potential for growth and resilience in 10x Genomics’ business model. The company’s consumable revenue showed a positive trend, surpassing expectations and indicating strong utilization of their products, particularly the Xenium platform. This growth in consumables helped offset the decline in instrument placements, which was impacted by budget uncertainties in the US academic and government sectors.
Additionally, the resolution of intellectual property litigation with Vizgen and BRKR/NanoString has strengthened 10x Genomics’ financial position, providing a boost to their balance sheet through settlements and ongoing royalties. While there is some uncertainty in the academic and government markets, the signs of elasticity in the Chromium platform and the broader adoption of Xenium consumables are promising. These factors contribute to a favorable risk-reward profile, justifying the Buy rating despite the challenges in certain market segments.
Savant covers the Healthcare sector, focusing on stocks such as Stevanato Group, Charles River Labs, and Natera. According to TipRanks, Savant has an average return of -5.0% and a 40.00% success rate on recommended stocks.
In another report released on May 12, Canaccord Genuity also maintained a Buy rating on the stock with a $15.00 price target.