Leerink Partners analyst Puneet Souda has maintained their neutral stance on TXG stock, giving a Hold rating on May 9.
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Puneet Souda has given his Hold rating due to a combination of factors affecting 10x Genomics. The company is experiencing challenges in its core academic and research markets, which have led to lowered expectations. Despite reporting first-quarter revenues that exceeded consensus estimates, the company faces uncertainty due to policy and funding issues in the United States, prompting management to withdraw its 2025 guidance.
Moreover, 10x Genomics has initiated cost-cutting measures, including an 8% reduction in personnel and significant non-salary spending cuts, to address these challenges. The company’s reliance on the US academic market, which constitutes a substantial portion of its revenue, adds to the uncertainty. While single-cell consumables showed resilience, the performance of instruments was weaker, and spatial products faced pressure due to the same academic headwinds. These factors contribute to the cautious stance reflected in the Hold rating.
In another report released on May 9, Bank of America Securities also reiterated a Hold rating on the stock with a $12.00 price target.