Synthetic biology company Twist Bioscience, Corp. (TWST) delivered a mixed set of numbers for the fourth quarter, with its top-line coming in ahead of estimates.
TWST also announced the acquisition of antibody discovery service company Abveris for a consideration of $190 million. The acquisition is expected to bolster TWST’s expertise with animal-based discovery.
Additionally, management expects the company’s first antibody in the clinic in 2022. With these developments in mind, let’s have a look at what’s changed in TWST’s key risk factors that investors should know.
Risk Factors
According to the TipRanks Risk Factors tool, TWST’s top two risk categories are Finance & Corporate and Ability to Sell, contributing 28% and 21% respectively, to the total 61 risks identified. In its recent annual report, the company has added two key risk factors.
Under the Legal & Regulatory risk category TWST highlighted that it may be exposed to reputation harm and other risks around corporate responsibility practices keeping in mind the current evolving expectations of investors, stockholders, customers, and other third parties, specifically environmental, social, and governance (ESG).
Companies that do not adapt or comply with these evolving expectations and standards or do not responding appropriately may face reputation damage and an adverse impact on business, financial condition, or share price.
Under the Macro & Political risk category, TWST acknowledged that the exit of the United Kingdom from the European Union will continue to have uncertain impacts and could negatively impact the company. (See Insiders’ Hot Stocks on TipRanks)
TWST is continuing to evaluate the uncertainty associated with financial, trade, regulatory, and legal implications on its U.K. and European operations, including the ability to ship products into the U.K.
Compared to a sector average of 9%, TWST’s Ability to Sell risk factor is at 21%.
Wall Street’s Take
On November 23, Robert W. Baird analyst Catherine Ramsey Schulte reiterated a Buy rating on the stock but decreased the price target to $113 from $130. Schulte noted the acquisition of Abveris will add additional antibody discovery expertise in-house for TWST.
Consensus on the Street is a Strong Buy based on 3 Buys and 1 Hold. The average Twist Bioscience price target of $126.50 implies a potential upside of 32% for the stock. Shares have dropped 28% so far this year.
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