Wall Street Is Still Bullish on This Punished Growth Stock -- Is It a Buy?
Shares of Bionano Genomics (NASDAQ: BNGO) tumbled by more than 55% this year, but that hasn't led Wall Street analysts who follow the stock to walk back their year-ahead price estimates or change their recommendations -- and for them, it's still a buy.
In fact, compared to its current price (near $2.50), the average price target of analysts is $11, which would imply a massive run-up over the coming months. But are those expectations realistic enough to be a factor in your purchasing decision, or would it be better for investors to buy shares of something else? Let's answer that question by looking at the forces driving the growth of Bionano's business and how they diverge from the forces affecting its stock price.
Bionano Genomics makes a device called the Saphyr, which biomedical laboratories use to analyze chromosomes. Specifically, the Saphyr maps genomes and identifies the presence of structural variations, which traditionally requires using a combination of expensive time-consuming laboratory techniques and several pieces of equipment to analyze rather than just one machine. If you're already a bit lost, just know that understanding what structural variations are scientifically is less important than understanding the company's pitch to customers, namely that by buying the Saphyr they can dramatically simplify their chromosomal analysis workflows and potentially save on costs, too.
Source Fool.com
