Is Bionano Stock a Buy Right Now? This Is What You Need to Know

Bionano Genomics (BNGO) didn't quite "beat earnings" when it reported its Q1 2021 results on Thursday last week -- and that's okay. Bionano posted a $9.9 million net loss for Read More... The post Is Bionano Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

Is Bionano Stock a Buy Right Now? This Is What You Need to Know

Bionano Genomics () didn't quite "beat earnings" when it reported its Q1 2021 results on Thursday last week -- and that's okay.

Bionano posted a $9.9 million net loss for the quarter, somewhat less than it lost one year previously, and in line with analyst estimates. Meanwhile, revenues nearly tripled to $3.2 million as the company enjoyed record sales of consumables and growth in the Saphyr installed base.

On the one hand, that's less good news than it may sound like -- sales actually declined 21% sequentially. On the other hand, the sales number didn't decline as much as analysts had feared, and the company also improved its gross profit margin on those sales by eight percentage points to 33%.

Investors by and large were pleased with Bionano's report, bidding the shares up more than 22% in Friday trading.

On a less positive note, Maxim analyst Jason McCarthy -- historically a bull on Bionano stock -- pulled in his horns a bit after hearing Thursday's news. McCarthy reiterated his "buy" rating on Bionano stock. At the same time though, he cut his price target on the shares from $14 to $10. (To watch McCarthy's track record, )

So what's curbing McCarthy's enthusiasm about Bionano?

It wasn't the business results per se. To the contrary, while acknowledging the sequential decline in revenue, McCarthy was pleased to observe that Bionano's Saphyr genomic optical mapping systems are winning market share among institutional buyers, giving rise to "increased demand for the reagent rental program and consumables," to higher sales in the consumables business, and improved gross margins on those sales. Bionano now has an installed base of 107 Saphyr units in the market, and aims to have 150 in place by the end of the year. The analyst also cited the "record number of flow cells sold and genomes analyzed through [Bionano's] services offering."

That being said, McCarthy seems to be concerned that there's less upside in Bionano stock today, than previously, given that the company took advantage of the share price's "significant" move higher in January and February to "smartly ... capitalize the company" by selling shares and raising cash. The plus side of this opportunistic move is that Bionano now has $362 million in its warchest -- enough to cover its cash needs for at least eight years at the company's current $44 million-ish annual cash burn rate. The minus side is that there are now many more shares on the market, divvying up future earnings such that each share outstanding now has a correspondingly smaller claim on such future profits.

Speaking of profits, McCarthy's latest prediction is for Bionano to report its first GAAP profit no sooner than 2024. Combine this expectation with "a peaking market in healthcare," "broad market headwinds" from the recent selloff in tech stocks, and profit taking among investors and, in McCarthy's view, while there's still "significant" upside remaining in Bionano stock, the profit potential is not quite as great as it once was.

Bionano has not attracted a lot of analyst attention, but those who have reviewed the stock agree with McCarthy's assessment. BNGO has a unanimous Strong Buy analyst consensus rating, based on 3 recent reviews. The stock’s $12 average price target suggests room for a 106% upside in the coming year. (See BNGO stock analysis on TipRanks)

To find good ideas for healthcare stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The post Is Bionano Stock a Buy Right Now? This Is What You Need to Know appeared first on TipRanks Financial Blog.

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Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions

Air Canada (AC) and Edmonton International Airport (EIA) have signed a historic green partnership to reduce carbon emissions and promote a more sustainable and greener aviation industry. Shares of Canada’s largest airline jumped 3% after the announcement.   The IEA-Air Read More... The post Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions appeared first on TipRanks Financial Blog.

Air Canada Partners With Edmonton International Airport to Reduce Carbon Emissions

Air Canada (AC) and Edmonton International Airport (EIA) have signed a historic green partnership to reduce carbon emissions and promote a more sustainable and greener aviation industry. Shares of Canada’s largest airline jumped 3% after the announcement.  

The IEA-Air Canada Sustainability Partnership is the first agreement in Canada intended to reduce the carbon footprint of air travel. The two organizations will work together and focus on initiatives promoting a greener environment in various areas. 

Myron Keehn, Vice President of Air Service and Business Development at Edmonton International Airport said, "Finding good partners who share our core values is critical. Air Canada is passionate about reducing its environmental impact and our partnership shows how airlines and airports can work together to promote a sustainable future. This is only the beginning as we know that there are tremendous opportunities to lead in both an environmentally and economically sustainable way." 

Samuel Elfassy, Vice President of Safety at Air Canada said, "This partnership with Edmonton Airports is an important step towards our midterm 2030 objectives that roll up into our overall net-zero by 2050 emissions goal. We look forward to working together in developing innovative, long term, sustainable airport and ground operations emission reductions that could potentially be scaled at other airports in Canada and internationally." 

These commitments will attract further investment to the Edmonton Metropolitan Region and create highly skilled jobs as the region moves towards a greener economy. (See Air Canada stock analysis on TipRanks) 

Last week, TD Securities analyst Tim James upgraded AC to Buy from Hold and raised its price target to C$30.00 (from C$28.00), for 15.4% upside potential.  

James believes that the decline in COVID-19 cases in Canada and a "rapidly increasing" portion of the population that is vaccinated are positive catalysts for Air Canada’s stock. 

The rest of the Street is cautiously optimistic on AC with a Moderate Buy consensus rating based on 7 Buys and 3 Holds. The average analyst price target of C$30.10 implies 17% upside potential from current levels. Shares have risen nearly 15% year-to-date. 

TipRanks’ Smart Score 

AC scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock’s returns are likely to outperform the overall market. 

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