10x Genomics downgraded to Market Perform from Outperform at Leerink

Leerink downgraded 10x Genomics (TXG) to Market Perform from Outperform with a price target of $12, down from $25. Despite having the market leading position in the single-cell market and a growing position in the spatial market, 10x’s business has significant exposure to the academic end market, especially in the U.S., the analyst tells investors in a research note. The firm says the recently implemented National Institutes of Health indirect costs cap poses significant risk on academic institutions, which is driving a change in researchers behavior towards conversation of capital. Leerink points out 10x Genomics is not accounting for the NIH cap in its guidance. It believes the impact to the company will be worse than initially feared.