Shares of California-based synthetic biology and genomics firm Twist Bioscience Corp. (TWST) closed 10.8% lower at $110.77 on Friday after the company reported a larger-than-expected loss for the fiscal third quarter ended June 30. The company, however, gained 1.6% in extended trade.
Twist manufactures synthetic biology tools for next-generation sequencing (NGS), DNA-based products, and antibody libraries for drug development and discovery. Its products are used in academic research, agriculture, industrial chemicals and healthcare sectors.
The company reported a loss of $0.82 per share, wider than the Street’s estimate of a loss of $0.75 per share and the year-ago loss of $0.67 per share. Quarterly revenues totaled $35 million, higher than analysts’ expectations of $32.27 million and the revenue of $21.2 million reported in the previous year.
Total orders amounted to $39.1 million, up from $24.7 million in the third quarter of Fiscal Year 2020. Meanwhile, for Fiscal Year 2021, the company expects revenue in the range of $129 million to $132 million. (See Twist stock chart on TipRanks)
The CFO of Twist Bioscience, Jim Thorburn, said, “We are raising our revenue guidance based on continued strength across our business.”
On June 29, William Blair analyst Matt Larew initiated coverage on the stock with a Buy rating but did not provide a price target.
The analyst said, “We believe the company is well-positioned to be the market leader for NGS sample preparation in the liquid biopsy market, which is the fastest-growing application of NGS and an area of tremendous potential.”
Overall, the stock has a Moderate Buy consensus based on 2 Buys and 2 Holds. The average Twist Bioscience price target of $130 implies 17.4% upside potential. Shares of the company have gained 85.3% over the past year.
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