On Monday, Barclays adjusted its price target on shares of Oxford Nanopore Technologies (ONT:LN) (OTC: ONTTF), reducing it to GBP1.60 from GBP1.85, while maintaining an Overweight rating on the stock. The revision reflects the firm's outlook for the company in light of recent market conditions and operational strategies.
The company faced challenges in the last two quarters, which have been a period of assessment for many firms in the sector. Despite these hurdles, Barclays anticipates some sequential improvements in Oxford Nanopore's end markets.
Oxford Nanopore's revenue composition is expected to be more heavily weighted towards the second half of the year. This projection is supported by several factors including new product launches, increased utilization of the company's offerings, and the timing of larger projects that are in the pipeline.
The firm highlights Oxford Nanopore's capital expenditure-light business model as a distinctive advantage. This approach could potentially set the company apart from competitors in the biotechnology and genomics industry, which often require significant upfront investments.
In summary, while the price target has been lowered, the Overweight rating suggests that Barclays continues to see Oxford Nanopore as a favorable investment, with positive developments anticipated in the latter half of the year.
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