On Thursday, Goldman Sachs issued a downgrade for Nautilus Biotechnology (NASDAQ:NAUT) from 'Neutral' to 'Sell', adjusting the price target to $1.75 from the previous $2.25. The investment firm cited increased competition in the discovery proteomics market and delays in Nautilus's product launch as primary reasons for the downgrade. According to InvestingPro data, NAUT is currently trading at $2.22, with analyst targets ranging from $2.25 to $5.00, suggesting mixed views on the stock's potential.
Nautilus Biotechnology, which had aimed to address the high-throughput and broadscale coverage needs within the proteomics market, has experienced setbacks in its instrument launch timeline. Originally scheduled for late 2023, the launch is now anticipated for the second half of 2025. This delay has allowed competitors to innovate and potentially capture market share that Nautilus might have targeted. InvestingPro data reveals the company is quickly burning through cash, with negative EBITDA of $79.4 million in the last twelve months and a market capitalization of $279 million.
Larger Mass Spec players, such as TMO and BRKR, have been recognized by Goldman Sachs for their impressive innovation, stepping in to fill the gap in the market Nautilus sought to address. According to the firm, these competitors have made significant strides in meeting the previously unmet need in the discovery proteomics space.
The analyst from Goldman Sachs highlighted the challenges Nautilus faces in developing an instrument that offers both extensive proteome coverage and high throughput. The firm believes that while Nautilus's long-term goal to surpass current Mass Spec offerings in coverage remains, the level of coverage expected will not be available at the time of the initial launch in 2025, as indicated by Nautilus's management.
The revised price target reflects the analyst's outlook on Nautilus Biotechnology's stock performance in light of these industry developments and internal delays. Investors are watching closely as the company navigates a more competitive landscape and works towards the eventual launch of its product. Trading near its 52-week low of $2.17, NAUT shows concerning financial metrics. Discover more insights about NAUT and access comprehensive analysis through the Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed financial health scores and expert insights.
In other recent news, Nautilus, Inc. disclosed its Q3 2024 earnings results, revealing a net loss of $16.4 million and ending the quarter with $221.2 million in cash reserves, expected to last until 2027. The company has made significant strides in the proteomics field, introducing a new assay for quantifying tau proteoforms related to Alzheimer's disease. Despite facing challenges, Nautilus is aiming for a commercial launch of its proteomics products in late 2025.
Ken Suzuki recently joined the company as Chief Marketing Officer to enhance market outreach efforts. Meanwhile, the company's CEO, Sujal Patel, emphasized the importance of progress in single molecule protein analysis. However, the company acknowledged falling behind in their goal to quantify a significant number of proteins due to high fallout rates in transitioning probes.
These recent developments include analysts' expectations of a possible delay in the commercial launch timeline, potentially pushing it into 2026. Despite this, there remains strong customer interest in Nautilus's technology, particularly in proteoform and broad-scale proteomics, indicating a significant market opportunity in the multibillion-dollar sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.