TD Cowen analyst Brendan Smith maintained a Buy rating on Ginkgo Bioworks Holdings yesterday and set a price target of $16.00.
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Brendan Smith’s rating is based on several key factors that highlight Ginkgo Bioworks Holdings’ potential for growth. The company’s Q2 revenues exceeded expectations, primarily driven by a 10% year-over-year increase in high-value Cell Engineering programs. Despite a significant drop in Biosecurity revenues due to international contract delays, the management’s reaffirmation of their FY25 topline and Cell Engineering revenue guidance reflects confidence in the company’s ability to navigate these challenges.
Furthermore, Ginkgo Bioworks has achieved a $250 million cost-savings milestone and remains on track for adjusted EBITDA breakeven by the end of 2026. The company’s strategic focus on expanding into AI tools and data-driven offerings, along with a robust pipeline of biosecurity projects, positions it well for future growth. These factors, combined with a strong government contract backlog, support the updated price target of $16, indicating a positive outlook for the stock.