Goldman Sachs Upgrades Twist Bioscience, Says Express Genes Launch Will Drive Margin Expansion
Portfolio Pulse from Vandana Singh
Goldman Sachs has upgraded Twist Bioscience Corp (TWST) from Neutral to Buy, anticipating that the launch of Express Genes in 2024 will address gross margin issues in their SynBio division and allow TWST to penetrate the larger biopharma market. The new product will enable faster gene delivery, which is expected to enhance revenue and profit margins. The market has a positive view of TWST's next-generation sequencing Tools business, but there are concerns about the SynBio division's gross margins. The biotech sector has seen a decrease in venture capital funding due to high interest rates and inflated valuations, but there are signs of a recovery, which could benefit TWST.
January 17, 2024 | 8:21 pm
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NEUTRAL IMPACT
Agilent Technologies is mentioned as a competitor in the next-generation sequencing Tools business, where TWST is viewed favorably.
While Agilent Technologies is mentioned as a competitor, the news is primarily focused on TWST and its product launch. The short-term impact on Agilent's stock is likely to be neutral as the article does not provide new information about Agilent's performance or market position.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Qiagen NV is mentioned as a competitor in the next-generation sequencing Tools business, where TWST is viewed favorably.
Qiagen NV is mentioned as a competitor, but the focus of the news is on TWST's product launch and upgrade. There is no direct impact on Qiagen's stock in the short term as the article does not provide specific details about Qiagen's business or market changes.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Goldman Sachs upgraded Twist Bioscience from Neutral to Buy, expecting the Express Genes product to improve margins and market reach, which could lead to increased revenue and profit margins.
The upgrade by Goldman Sachs is a strong positive signal for investors, suggesting confidence in TWST's future performance, especially with the launch of Express Genes. This could lead to increased investor interest and a potential rise in stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100