BTIG analyst Mark Massaro reiterated a Sell rating on Ginkgo Bioworks Holdings (DNA – Research Report) yesterday and set a price target of $6.00.
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Mark Massaro has given his Sell rating due to a combination of factors affecting Ginkgo Bioworks Holdings. One primary concern is the company’s low visibility on revenue per program, despite efforts to cut costs and roll out new tools. The company’s Q1 performance was bolstered by a non-recurring adjustment, which raises questions about the sustainability of its revenue growth.
Additionally, Ginkgo faces challenges in achieving its goal of reaching adjusted EBITDA breakeven by the end of 2026, as there is uncertainty about its ability to generate the necessary revenue. The life sciences sector is experiencing hesitancy, particularly regarding outsourcing, which could impact Ginkgo’s growth. Although there was a positive increase in active revenue-generating cell programs, many of the new programs are generating less revenue per program. These factors contribute to the reiterated Sell rating and a price target of $6 per share.
DNA’s price has also changed slightly for the past six months – from $8.600 to $8.120, which is a -5.58% drop .