TXG - 10x Genomics cut to Sell at Goldman Sachs on slower sales ramp

• 10x Genomics, Inc. ( NASDAQ: TXG ) dropped ~6% in the pre-market trading Thursday after Gladman Sachs downgraded the life sciences company to Sell from Neutral, citing a significantly slower trajectory for its future sales growth. The price target set to $35 per share implies a downside of ~18% to TXG's last close.
• The analysts argue that as TXG transforms into a multi-product company that operates in multiple markets, its 2023/24 sales growth could lag the consensus and historical rates.
• Goldman Sachs points out that despite having a novel and differentiated instrument for single cell analysis, the company's durable growth rate for the business is likely to stand below the FactSet consensus over the next few years.
• According to the firm, TXG's penetration in the academic market has reached the highest among high utilization, core lab customers.
• Wall Street has remained bullish on 10x Genomics ( TXG ) stock, with an average rating of Buy from analysts, while Seeking Alpha Author ratings indicated a Hold rating . However, Seeking Alpha's quant system, which consistently beats the market, rates TXG as a Strong Sell.

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