PACB - Pacific Biosciences' Pivot: From Shareholder Dilution To Expansion And Leadership
2024-03-19 12:42:59 ET
Summary
- PacBio expands product adoption, introducing Revio and Onso, enhancing market and technological reach.
- Despite 10% growth since 2015, dilution eroded shareholder value; pivot possible with 25% growth through 2029 and improved financing mix.
- Stand-alone and peer analyses show optimism despite further dilution risks, with brokers forecasting a 178% upside.
- Other risks include fast-moving technological changes in a competitive industry.
- It’s a gradual Speculative Buy, with an expected return of +29%.
Investment Thesis for Pacific Biosciences
PacBio's ( PACB ) expansion with Revio and Onso sequencing technologies positions the company for market and technology gains. It promises a move away from previous dilution with a revenue growth forecast of 25% by 2029. Despite the risks from technological changes and further dilution, analysts see an upside potential of 178%. However, a gradual, Speculative Buy with an expected return of 29% is more reasonable.
Company Insights
PacBio is involved in developing and producing advanced sequencing solutions. Sequencing refers to determining the exact sequence of nucleotides (the building blocks of DNA and RNA) within a DNA molecule. These solutions are pivotal for scientists and clinical researchers aiming to enhance their understanding of genomes and life processes on Earth....
Pacific Biosciences' Pivot: From Shareholder Dilution To Expansion And Leadership