TD Cowen maintained a Hold rating on 10X Genomics (NASDAQ:TXG) with a steady price target of $20.00. The decision came after 10X Genomics revealed plans at an industry event to introduce new Single Cell (SC) products in the fourth quarter. These offerings are designed to be more cost-effective, with a focus on pricing per sample and per cell.
The upcoming SC products include a ‘mega scale’ option and a new product priced at $560 per sample. This move is part of the company’s strategy to reduce costs, following the earlier launch of the lower-priced GEM-X kits in early 2024. According to the firm, management at 10X Genomics has acknowledged the importance of lowering prices to remain competitive in the market.
The analyst from TD Cowen highlighted the significance of these new products in the company’s lineup, especially in terms of their cost efficiency. The introduction of these products aims to address the market’s demand for more affordable options in the single-cell analysis space.
10X Genomics, a life science technology company, is known for its innovative solutions that enable researchers to explore the inner workings of biology at the single-cell level. The company’s technology has been widely adopted in biomedical research, contributing to advancements in various fields including oncology, immunology, and neuroscience.
The maintained price target of $20.00 by TD Cowen indicates the firm’s cautious optimism about the company’s performance and its potential growth following the launch of the new SC products. The announcement of these products is expected to play a pivotal role in the company’s market positioning and financial outlook.
In other recent news, 10X Genomics reported a revenue increase in its second-quarter earnings for 2024, with total revenue reaching $153 million. This marks a 4% year-over-year growth and a 9% rise from the previous quarter. However, due to slower instrument sales, including its Xenium platform, the company has revised its full-year revenue guidance down to between $640 million and $660 million.
Morgan Stanley reduced its price target for 10X Genomics to $46.00, maintaining an Overweight rating on the stock. On the other hand, Canaccord Genuity reiterated a Buy rating, acknowledging the company’s strategic product adjustments, such as the launch of the Chromium Xo instrument, a lower-cost option for single-cell analysis.
Additionally, 10X Genomics announced leadership changes with Mennah Moustafa appointed as Chief Commercial Officer and Adam Taich as the new CFO.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on 10X Genomics’ financial position and market performance. The company’s market capitalization stands at $2.57 billion, reflecting its significant presence in the life sciences technology sector. Despite a challenging year with a year-to-date price total return of -61.92%, 10X Genomics has shown resilience with a 3-month price total return of 12.93%, indicating a recent uptick in investor confidence.
InvestingPro Tips highlight that 10X Genomics holds more cash than debt on its balance sheet, which could provide financial flexibility as the company introduces its new cost-effective Single Cell products. This strong liquidity position is further supported by the fact that the company’s liquid assets exceed short-term obligations, potentially allowing for continued investment in product development and market expansion.
However, it’s worth noting that analysts do not anticipate the company to be profitable this year, aligning with the TD Cowen’s cautious Hold rating. This expectation is reflected in the negative operating income of -$183.54 million for the last twelve months as of Q2 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for 10X Genomics, providing a deeper understanding of the company’s financial health and market position.
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