PacBio initiated with a Buy at Goldman Sachs

Goldman Sachs analyst Matthew Sykes initiated coverage of PacBio (PACB) with a Buy rating and $17 price target, representing 30% upside. The analyst believes the company’s new Revio long read instrument launch is “transformative” and represents the most credible, long term competitive challenge to the established leader in short read sequencing, Illumina (ILMN). Long read sequencing offers significant advantages over short read in terms of information content and with Revio, the economics have come closer in line while accuracy issues have been effectively addressed, the analyst tells investors in a research note. The firm believes the market is at an inflection point for long read sequencing to become a more ubiquitous tool for the overall sequencing market.