BioNano Genomics (BNGO) shares have been on a tear this month. The stock price of this life sciences instrumentation company has raced ahead 52%, leaving the iShares Nasdaq Biotechnology ETF (IBB) in its dust.
But would you believe it has even further to run? Would you believe it could go up another 155%? Maxim's 5-star analyst Jason McCarthy does.
The stock has been making moves after new data published by an international consortium showed extremely promising results for one of the company products.
In a study of 85 patients with inherited genetic disorders, Bionano’s genome imaging instrument Saphyr identified all 100 chromosomal aberrations in patients’ samples, and therefore equaling cytogenetics standard-of-care tests such as karyotyping, FISH, and/or chromosomal microarray.
Why is this important? McCarthy explained: “Considering that the aberrations required a combination of all three methods to complete, Saphyr being able to match the results in 100% of cases with a simplified automated workflow further highlights Saphyr as a disruptive technology in the cytogenetics space.”
McCarthy argues Saphyr could be a “game changer” in the emerging digital cytogenetics space. Labor intensive methods are normally required by cytogenetic labs in order to detect and diagnose SV (structural variation) driven diseases. Additionally, these working practices have notable limitations and require a combination of methods to provide “comprehensive characterization.”
“Saphyr,” says McCarthy, “Could potentially replace these techniques with a simplified and rapid automated workflow that provides comprehensive detection regardless of the type of variation. Saphyr's workflow is much quicker, running 42 samples in a week… As such, the Saphyr approach could set the stage to integrate into the cytogenetics labs.”
To this end, McCarthy rates BNGO a Buy along with a $2 price target. Investors could be pocketing a hefty 155% gain, should McCarthy’s thesis play out in the year ahead. (To watch McCarthy’s track record, click here)
With the addition of 2 more Buy ratings posted over the last 3 months, BNGO has a Strong Buy consensus rating. The average price target is $1.47, and while not quite as high as McCarthy’s, could still provide plenty of upside in the shape of 85%. (See BNGO stock-price forecast on TipRanks)
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