Ginkgo Bioworks stock price target raised to $16 from $12 at TD Cowen

Investing.com - TD Cowen raised its price target on Ginkgo Bioworks Holdings Inc (NYSE:DNA) to $16.00 from $12.00 on Friday, while maintaining a Buy rating on the stock. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, with the stock showing strong momentum, returning over 37% year-to-date.

The biotechnology company reported second-quarter revenue of $50 million, exceeding consensus estimates of $42 million despite a 12% year-over-year decline. The revenue beat came from strong cell engineering performance, which offset a 48% drop in biosecurity revenue due to delays in international contracts. The company maintains a healthy financial position with a current ratio of 4.88, indicating strong liquidity to meet short-term obligations.

Ginkgo Bioworks reaffirmed its full-year 2025 revenue guidance of $167-187 million and cell engineering revenue of $117-137 million. The company revised its biosecurity revenue expectations to $40 million or more, down from the previous guidance of $50 million or more. InvestingPro subscribers can access 10+ additional investment tips and comprehensive financial analysis for DNA, helping them make more informed investment decisions.

TD Cowen noted that Ginkgo has achieved its $250 million cost-savings milestone and remains on track to reach adjusted EBITDA breakeven by the end of 2026. The firm sees potential upside from AI and automation initiatives.

The price target increase reflects TD Cowen’s confidence in Ginkgo’s cell engineering business despite the softer performance in the biosecurity segment.

In other recent news, Ginkgo Bioworks has announced several notable developments. The company secured a $4.66 million contract to deliver an automated anaerobic phenotyping platform to the Environmental Molecular Sciences Laboratory at Pacific Northwest National Laboratory. This project will involve the construction and installation of a fully integrated workcell utilizing Ginkgo’s Reconfigurable Automation Cart technology. Additionally, Ginkgo Bioworks has launched a new high-throughput ADME profiling service aimed at accelerating small molecule drug discovery, offering competitive pricing within the United States.

In another development, Ginkgo Bioworks has entered into a collaboration with Hugging Face to make biological datasets more accessible for machine learning applications, potentially speeding up drug development. The collaboration has already resulted in the release of the GDPx and GDPa dataset series. Furthermore, Ginkgo Bioworks announced a change in its executive team, with Steven Coen set to become the new Chief Financial Officer following the resignation of Mark Dmytruk in May 2025. Coen brings extensive experience in public accounting and corporate finance to his new role. These recent developments highlight Ginkgo Bioworks’ ongoing efforts in automation, drug discovery, and leadership transition.

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