TXG - 10x Genomics draws Overweight rating at Barclays on business transformation

2023-05-10 12:46:22 ET

Life sciences company 10x Genomics ( NASDAQ: TXG ) added ~3% on Wednesday after Barclays initiated its coverage with an Overweight recommendation and $65 per share target citing changes at the company in an underpenetrated market.

10x Genomics ( TXG ) which offers products aimed at biological resolution through single cell or at high spatial resolution, has introduced new products and expanded its portfolio, the analyst Luke Sergott argues.

Citing the potential of those products to cut costs, Sergott argued that 10x Genomics ( TXG ) could reignite demand backed by its refocused sales force.

“As such, the business is maturing into a more stable recurring revenue business with an accelerating growth profile and a sizable margin expansion opportunity,” the analyst added.

As for some of the other reasons for his bullish view, the analyst points to the potential upside to the company’s conservative guidance and underpenetrated market for next-generation sequencing.

More on 10x Genomics

• 10x Genomics cut to Sell at Goldman Sachs on slower sales ramp
• A Deep Dive Into 10x Genomics, A Promising Portfolio

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