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Twist Bioscience Corporation (NASDAQ:TWST)’s shares tumbled to a 52-week low, touching down at $28.41 amidst a challenging market environment. The synthetic DNA producer, with a market capitalization of $1.71 billion, maintains strong liquidity with a current ratio of 4.51, according to InvestingPro data. The company, known for its synthetic DNA production for various applications, has faced a significant downturn over the past year, with its stock price reflecting a steep decline despite impressive revenue growth of 25.3%. With a beta of 2.54 indicating higher volatility than the broader market, investors are closely monitoring the stock as it hovers at this low point. Three analysts have recently revised their earnings estimates downward, as revealed by InvestingPro, which offers additional valuable insights through its comprehensive Pro Research Report.
In other recent news, Twist Bioscience reported a notable 23% increase in revenue for the second quarter of fiscal year 2025, reaching $92.8 million. This revenue growth was driven by a 21% rise in Synthetic Biology and a 25% increase in Next (LON:NXT) Generation Sequencing revenues. Despite this strong revenue performance, the company reported an earnings per share of -$0.66, missing analysts’ forecast of -$0.61. Analysts from Evercore ISI adjusted their price target for Twist Bioscience to $50, down from $52, but maintained an Outperform rating, reflecting confidence in the company’s growth trajectory.
Additionally, Twist Bioscience announced the spinout of its DNA data storage division into a separate entity, Atlas Data Storage, which is expected to reduce cash burn and contribute to EBITDA break-even by the end of fiscal year 2026. Barclays (LON:BARC) maintained an Overweight rating with a $45 price target, citing the spinout as a strategic move to enhance shareholder value. Meanwhile, TD Cowen reaffirmed a Buy rating and a $58 price target, highlighting the company’s resilience to industry challenges and strong positioning.
The company also exceeded gross margin expectations, reporting a margin of 49.6%, which was above both Leerink Partners’ estimate and the consensus estimate. This improvement in gross margins has bolstered confidence in Twist Bioscience’s margin outlook. Looking ahead, the company reiterated its full-year revenue guidance of $372 million to $379 million and aims to achieve EBITDA breakeven by the end of fiscal 2026.
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