PACB - Pacific Biosciences Hit By Sentiment But The Future Of Long-Read Sequencing Is Strong

• PacBio shares have been hit hard as investors have abandoned riskier high-multiple life sciences stocks, and weaker guidance for FY'22 certainly didn't help.
• Illumina's announcement that it will enter long-read sequencing with its Infinity workflow offering is a threat, but I don't see it as true competition for most of PacBio's use-cases.
• Management continues to spend aggressively to build the business, including the launch of a new short-read sequencing technology platform.
• Long-term revenue growth of 30%-plus and future FCF margins in the high 20%'s can support a fair value around $20 today, but sentiment is weak now.

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