Wild stock market moves are a familiar sight in 2020 for investors of BioNano Genomics (BNGO). The cytogenetics specialist’s shares are prone to swing strongly in either direction, although, unfortunately, most have been to the downside.
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However, the latest move was decidedly upbeat. In Wednesday’s session, the stock took off to the tune of 40% following the publication of some positive data.
An article which made side-by-side comparisons between Bionano’s optical genome mapping platform Saphyr and PacBio’s HiFi chemistry revealed that Saphyr had the upper hand on several metrics.
Across 32 different human genomes, PacBio technologies found only 72% of the large SVs (structural variants) that Bionano’s optical genome mapping (OGM) detected.
Saphyr was also found to be better at locating indels in regions correlated to neurodevelopment.
Additionally, Saphyr appears to be more cost effective. The platform’s estimated cost of $500 per genome coming in far below the $10,000-20,000 per genome when HiFi and SMRT sequencing are put into action.
Oppenheimer’s Kevin DeGeeter believes the data should help Saphyr make further inroads in the “large SV research market.” The analyst views 2021 “largely as an execution year.”
“We expect the data to support broader adoption of Saphyr for de novo sequencing and research applications. the 5-star analyst said. “Furthermore, we expect 2021 to be an important year for adoption of Saphyr for clinical cytogenetics market based on a series of positive recent publications… Based on our current assessment of the competitive landscape, we do not believe long-read sequencing technologies can replicate Saphyr’s performance and cost structure for digital cytogenetics testing.”
Accordingly, DeGeeter reiterated an Outperform (i.e. Buy) on BNGO shares, along with a $1.5 price target. The implication for investors? Strong upside of 113%. (To watch DeGeeter’s track record, click here)
Two other analysts have thrown the hat in with a BNGO review recently, one saying Buy and the other recommending a Hold — all add up to a Moderate Buy consensus rating. Meanwhile, the average price target stands at $1.42, implying gains of 101% could be in the cards over the next 12 months. (See BNGO stock analysis on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
