Canaccord still bullish on 10x Genomics, PacBio despite reducing 2024 estimates

Canaccord reiterates Buy ratings on 10x Genomics (TXG) and Pacific Biosciences (PACB) with price targets of $70 and $15, respectively, but is decreasing its 2024 — and beyond — revenue estimates for both. At the recent Advances in Genome Biology and Technology General Meeting in Orlando, Florida, the firm had the opportunity to speak with industry stakeholders and company management teams. After its discussions, Canaccord thinks it is prudent to take a more conservative stance on the growth outlooks for many life science tools companies. The firm believes the companies will reflect a similar approach in their initial 2024 revenue guidance ranges. For 10x Genomics, Canaccord assumes a slower start for Chromium and Visium as customers transition to new products. For Pacific, the firm is lowering its Revio placement estimates to reflect the challenged macroenvironment. That said, Canaccord believes both companies could exceed its estimates by the end of 2024. Overall, the firm remains bullish and thinks the long-term growth potential for each company is not reflected at current levels.