Canaccord cuts 10X Genomics stock target to $15, keeps Buy rating

Published 12/05/2025, 11:14
Canaccord cuts 10X Genomics stock target to $15, keeps Buy rating

On Monday, Canaccord Genuity adjusted its price target for 10X Genomics (NASDAQ:TXG) shares, lowering it to $15.00 from the previous $18.00, while still maintaining a Buy rating on the stock. Currently trading at $8.77, the stock has experienced significant volatility, having declined nearly 39% year-to-date. According to InvestingPro analysis, the stock’s price movements have been notably volatile, with a 52-week range of $6.78 to $28.25. The revision reflects a more cautious outlook due to reduced near-term estimates and heightened macroeconomic uncertainty.

10X Genomics reported its first-quarter 2025 financial results after the market closed on Thursday, surpassing both Canaccord’s projections and the FactSet consensus. The company maintains strong operational metrics, with InvestingPro data showing a healthy gross profit margin of 68.36% and a robust current ratio of 5.37, indicating solid financial stability. The analysts highlighted that even without the one-time revenue boost from a patent litigation settlement with Vizgen, a competitor in spatial biology, 10X Genomics would have exceeded expectations. This success was largely attributed to solid growth in consumables revenue, including both Chromium and Spatial products.

Despite these results, 10X Genomics’ management expressed concerns about the challenging macro environment, which they believe could impact the company’s performance for the rest of the year. In light of these uncertainties, the company has chosen to withdraw its revenue guidance for 2025.

For the second quarter of 2025, 10X Genomics has provided guidance that suggests revenue will be roughly on par with the first quarter, once the settlement benefit is excluded. The company anticipates a potential return to growth as the current macroeconomic headwinds ease, propelled by the introduction of new products and enhanced execution strategies.

In other recent news, 10x Genomics has reported its fourth-quarter 2024 earnings, revealing a revenue of $165 million, which exceeded analyst expectations of $153.44 million. However, the company posted an earnings per share (EPS) of -$0.40, falling short of the forecasted -$0.31. The company also provided revenue guidance for fiscal year 2025, projecting it to be between $610 million and $630 million, slightly below the consensus estimate of $631 million. Meanwhile, 10x Genomics secured a worldwide permanent injunction against Parse Biosciences, preventing them from manufacturing or selling certain products due to patent infringements. On the analyst front, Citi and Canaccord Genuity have both maintained a Buy rating on 10x Genomics’ stock while adjusting their price targets to $20 and $18, respectively. Analysts noted the company’s strong sales of Chromium instruments and spatial consumables as key drivers of revenue, despite concerns over NIH funding uncertainties. 10x Genomics continues to focus on transitioning to its Gem-X technology and expanding its product offerings to drive future growth.

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