Why Bionano Inventory Is ‘Underappreciated,’ In accordance to Oppenheimer

2021 was a big year for Bionano (BNGO). The spotlight shone on the existence sciences organization centered on its possible to renovate the cytogenetics area with the assist of its genome imaging process Saphyr.

Along with the genuine-world progress, BNGO inventory has been on a wild trip. The shares soared to improbable heights at the start off of calendar year, but have been on a downtrend because and now sit 80% under the February highs.

That claimed, Oppenheimer’s Kevin DeGeeter thinks that behind the volatility lies an “underappreciated message.”

“Management is executing against the cytogenetics adoption thesis,” the 5-star analyst claimed. “BNGO is on monitor to meet or exceed its 2021 Saphyr placement intention of 150-as well as (our estimate is 156). Various clinical validation reports to help reimbursement are enrolling very well and commercial adoption is primary to larger consumable pull-by that should impression 4Q21 and 2022.”

That past issue is essential. Last week, the organization disclosed that the University Hospitals Leuven in Belgium will expand its BELAC (Belgian Accreditation Body) accredited menu to incorporate OGM (optical genome mapping) in examination of acute myeloid leukemia (AML), chronic lymphocytic leukemia (CLL) and facioscapulohumeral muscular dystrophy (FSHD). This follows on from an accreditation to use OGM in investigation of acute lymphoblastic leukemia (ALL).

DeGeeter thinks this need to “drive an uptick” in consumables commencing this quarter. Highlighting time and charge-financial savings as the most desirable competitive rewards of OGM, by employing Saphyr, Leuven is currently on-program to attain its intention of 500 samples per year.

Leuven is a person of a number of European labs completing accreditation. Saphyr adoption in Europe has taken off quicker than it has in the US with labs in Belgium, Spain, and Germany pursuing accreditation.

As each individual significant-quantity lab is predicted to process 300–500 samples a calendar year, at $400–500 per sample, annual consumables from a single lab could generate all-around $180,000 at the midpoint. The analyst estimates the European adoption has supported calendar year-about-yr advancement of 29% for consumables over the last 12 months.

DeGeeter also sees the shares clawing again most of the year’s early gains. Dependent on his $14 price goal, the stock will surge ~349% about the coming months. The analyst’s score stays an Outperform (i.e., Acquire). (To look at DeGeeter’s observe report, simply click right here)

DeGeeter’s forecast mirrors that of his colleagues. While the average price tag focus on is a far more modest $12, its still factors in upside of 260%. In addition, with two other recent beneficial opinions, the inventory offers a Strong Obtain consensus ranking. (See BNGO stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this posting are solely these of the highlighted analyst. The articles is supposed to be utilized for informational needs only. It is quite crucial to do your personal analysis prior to producing any expenditure.

Candice Cearley

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