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Bionano: On Course to Beat 2021 Saphyr Placement Guidance

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  • BNGO

Bionano (BNGO) might have reported a wider loss than expected in Q3, but that factor is of less importance to Oppenheimer’s Kevin DeGeeter.

The life sciences company reported a net loss of $20.75 million, a 92% increase on the same period last year. However, DeGeeter believes the company surpassed expectations on the three most important metrics.

First off, for the 6th consecutive quarter, Bionano posted a beat on the top-line, with revenue increasing by 112% year-over-year to $4.7 million vs. the Street’s call for $4.2 million.

There was even better growth on the consumables front, as the company sold 3,969 nanochannel array flow cells, a 122% uptick and amounting to the best quarterly haul ever. Street was expecting 3,313.

Lastly, and most importantly, the company added 20 new installations of its optical genome mapping (OGM) system Saphyr, someway above the consensus estimate of 14. This brought Saphyr’s total placements by the end of September to 141, also “well above” DeGeeter’s estimate of 135 and keeping the company on track to improve on its guidance of 150+ by the end of the year. As such, DeGeeter raised his forecast to 156 placements from the prior 150.

Saphyr’s ongoing success is key to DeGeeter’s long-term outlook; “We continue to view installed systems as best predictor of future revenue growth,” the 5-star analyst explained.

During the height of the pandemic, given access restrictions, Bionano regularly shipped more units than could be installed. Although the trend has been “normalizing” somewhat, in the quarter the company still shipped 24 units while installing only 20. Accordingly, DeGeeter sees the completion of installs on shipped units plus the $132,000 from annual contracts on new reagent rentals once placed as “providing healthy visibility on near-term growth.”

The company also believes that the prototype of the next-gen Saphyr will be completed this quarter, signaling to DeGeeter that a 2023 introduction remains on track.

Additionally, due to equity raises made during Q1, the company’s cash position has significantly improved; Bionano’s balance sheet boasted $326.1 million in cash and short-term investments at the end of the quarter, compared to $38.4 million at the end of last year.

All in all, there’s no change to DeGeeter’s rating which stays an Outperform (i.e., Buy) or price target, which remains at $14. There’s upside potential of an impressive 136% from current levels. (To watch DeGeeter’s track record, click here)

Other analysts are no less confident; 2 additional Buys make for a Strong Buy consensus rating; shares are anticipated to more than double in the year ahead, given the average price target clocks in at $12. (See Bionano stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.