Stifel cuts Oxford Nanopore stock rating to sell, target to GBP0.10

Published 24/03/2025, 12:10
Stifel cuts Oxford Nanopore stock rating to sell, target to GBP0.10

On Monday, Stifel analysts announced a downgrade in the stock rating of Oxford Nanopore Technologies Plc (ONT:LN) (OTC: ONTTF), moving it from Hold to Sell. The firm also reduced the price target to GBP0.10 from the previous GBP0.14. The downgrade was based on concerns regarding the company’s growth prospects and increasing market headwinds anticipated for 2025 and beyond.

Stifel’s analysis pointed to a combination of near-term and mid-term challenges that are expected to increase the downside risk to Oxford Nanopore’s mid-term guidance. Despite the company’s stock trading at roughly 3.5 times its FY25 enterprise value to sales, which is considered attractive compared to historical multiples and about a 10% discount to its peers, Stifel expressed caution.

The firm highlighted several factors that contributed to its decision, including a worsening funding environment, rising competition, and the heightened risk to the company’s mid-term financial guidance. These elements, according to Stifel, introduce too much uncertainty into the investment case for Oxford Nanopore.

Stifel’s announcement reflects a bearish outlook on the biotechnology company, known for its innovative approach to DNA sequencing. Oxford Nanopore’s stock performance and investor sentiment are likely to be influenced by these revised expectations and the potential implications for the company’s financial health in the coming years.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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