- The shares of Singular Genomics Systems ( NASDAQ: OMIC ) dropped in the pre-market trading Wednesday after UBS downgraded the life sciences company to Neutral from Buy, citing a delay in its G4 sequencer shipments.
- Citing a disappointing 2Q update” from the company, UBS argues that unanticipated delays for vital electronic components led to a hold-up of G4 shipments.
- As the company expects monthly shipments of 1-2 instruments in 4Q and 2-4 instruments in 1Q23, the firm lowers its 2022 and 2023 shipments by ~75% and 45%, respectively.
- Despite the positives of G4, such as speed, flexibility, and accuracy amid an opportunity to gain share in the short-read next-generation sequencing, the firm expects a slower near-term sales ramp.
- The price target lowered to $4.50 from $10.00 stands ~18% lower than the current average price target for the stock on Wall Street.
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Singular Genomics cut to Neutral at UBS on delays for sequencer shipments