2021 was a massive 12 months for Bionano (BNGO). The spotlight shone on the lifestyle sciences enterprise primarily based on its prospective to renovate the cytogenetics house with the aid of its genome imaging technique Saphyr.
Along with the actual-planet development, BNGO stock has been on a wild trip. The shares soared to improbable heights at the begin of year, but have been on a downtrend due to the fact and now sit 80% beneath the February highs.
That claimed, Oppenheimer’s Kevin DeGeeter believes that driving the volatility lies an “underappreciated message.”
“Management is executing versus the cytogenetics adoption thesis,” the 5-star analyst said. “BNGO is on observe to meet up with or exceed its 2021 Saphyr placement goal of 150-as well as (our estimate is 156). Various medical validation research to support reimbursement are enrolling very well and commercial adoption is top to increased consumable pull-as a result of that should really influence 4Q21 and 2022.”
That last position is important. Last 7 days, the organization disclosed that the College Hospitals Leuven in Belgium will develop its BELAC (Belgian Accreditation System) accredited menu to contain OGM (optical genome mapping) in examination of acute myeloid leukemia (AML), persistent lymphocytic leukemia (CLL) and facioscapulohumeral muscular dystrophy (FSHD). This follows on from an accreditation to use OGM in evaluation of acute lymphoblastic leukemia (ALL).
DeGeeter believes this should “drive an uptick” in consumables starting this quarter. Highlighting time and charge-financial savings as the most desirable competitive advantages of OGM, by making use of Saphyr, Leuven is at this time on-program to achieve its aim of 500 samples for every yr.
Leuven is a single of a amount of European labs finishing accreditation. Saphyr adoption in Europe has taken off more quickly than it has in the US with labs in Belgium, Spain, and Germany pursuing accreditation.
As every large-volume lab is expected to course of action 300–500 samples a yr, at $400–500 per sample, annual consumables from a single lab could make about $180,000 at the midpoint. The analyst estimates the European adoption has supported yr-over-12 months advancement of 29% for consumables over the last 12 months.
DeGeeter also sees the shares clawing again most of the year’s early gains. Centered on his $14 value concentrate on, the stock will surge ~349% above the coming months. The analyst’s rating stays an Outperform (i.e., Get). (To check out DeGeeter’s observe file, click on in this article)
DeGeeter’s forecast mirrors that of his colleagues. Though the common rate focus on is a extra modest $12, its nonetheless components in upside of 260%. In addition, with two other latest beneficial critiques, the stock features a Solid Acquire consensus rating. (See BNGO inventory forecast on TipRanks)
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Disclaimer: The views expressed in this posting are entirely all those of the showcased analyst. The written content is meant to be used for informational reasons only. It is very vital to do your have assessment before making any expense.