Singular Genomics Systems ( NASDAQ: OMIC ) lost ~13% in the pre-market Wednesday after Bank of America downgraded the life sciences company to Underperform from Buy, noting a marked delay in sales ramp due to supply chain issues.
The analysts led by Michael Ryskin point out that despite in-line financials for Q2 2022, the company flagged significant manufacturing issues that could impact the speed of commercial activity and instrument shipments.
With the company expecting only 1 – 2 monthly shipments of its next-generation genetic sequencer G4 Instrument for the rest of the year before a gradual recovery next year, “we cut our estimates for the next 1-2 years on supply-chain related impact, the team wrote.
In addition, the analysts expect Singular Genomics ( OMIC ) will struggle to gain a foothold in the competitive DNA sequencing space dominated by Illumina ( ILMN ) and new entrants from Element and Ultima. The firm cuts the price target on the stock to $3 from $6.
In May, Ultima Genomics sent Illumina ( ILMN ) lower when the gene sequencing company announced ~$600M funding from investors including Andreessen Horowitz, Peter Thiel’s Founders Fund, and Khosla Ventures.
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Singular Genomics falls 13% after double downgrade at BofA