10x Genomics initiated with an Outperform at Leerink

Leerink initiated coverage of 10x Genomics with an Outperform rating and $35 price target. The firm notes 10x Genomics is the leader in the single-cell market, which accounts for about 70% of product sales, but Leerink believes its outlook now depends on its Spatial business as researchers add the spatial context to gain biological insights. Despite well-understood lower SC expectations, the firm thinks 10x Genomics can deliver 10%-plus CAGR. Leerink sees up to 50% of Xenium customers buying 2-plus instruments and about 20% buying 3-plus in the long run as sample backlog grows in labs.