PacBio downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Rachel Vatnsdal downgraded PacBio to Neutral from Overweight without a price target. The downgrade follows the preannouncement last week as the company missed 1Q results, reduced 2024 guidance, and pushed out the timing of achieving greater than $500M of revenue, the analyst tells investors in a research note. The firm continues to have confidence in the sequencing market and believes PacBiois the best way to capitalize on long-read sequencing trends over the long-term. However, the shares will continue to be pressured in the near-term as investors look for execution and data points demonstrating the market opportunity for Revio and long-read sequencing remains intact, contends JPMorgan.