TWST - Twist Bioscience: Strong Performance In A Soft Market

2024-02-07 09:22:26 ET

Summary

• Twist Bioscience reported strong results in the first quarter of FY2024, despite a tepid demand environment.
• Growth was somewhat exaggerated by lumpy NGS revenue, but overall the business is progressing well, particularly from a profitability perspective.
• Twist's share price has increased significantly in recent months, which probably means that near-term upside is limited.

Twist Bioscience ( TWST ) recently reported strong results in Q1 FY2024, particularly given how tepid the demand environment is. While some of this strength is a mirage created by lumpy NGS revenue, Twist's business continues to scale and progress towards cash flow breakeven. The stock may not look particularly cheap given its rise over the past 3 months, but it should be kept in mind that both the Biopharma and Data Storage businesses have significant potential, which isn't currently reflected in the company's financial performance....

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