On Wednesday, BTIG reaffirmed its Buy rating on shares of Bionano Genomics (NASDAQ:BNGO), maintaining a price target of $2.00. The firm recognized Bionano's achievements in the second quarter, including the acquisition of a Current Procedural Terminology (CPT) code from the American Medical Association for Optical Genome Mapping (OGM) in hematological cancers and the completion of multiple financings to bolster the company's financial position.
The analyst noted that Bionano Genomics' performance for the quarter was roughly in line with expectations. The company's recent initiatives are seen as significant steps towards the broader use of OGM, particularly in clinical settings for the treatment of blood cancers.
Looking to the future, BTIG identifies several key catalysts for Bionano Genomics that could potentially speed up the adoption of OGM. These include both clinical applications in hematological cancers and other areas. The firm anticipates that Bionano will continue to strengthen its balance sheet through additional financing, which is expected to extend the company's cash runway.
The statement from BTIG reflects confidence in Bionano Genomics' strategic direction and its ability to capitalize on upcoming opportunities. The firm's reiteration of the Buy rating and $2.00 price target suggests a positive outlook for the company's stock performance.
In other recent news, Bionano Genomics Inc. reported a 10% year-over-year decline in Q2 2024 revenue, which fell to $7.8 million due to a significant drop in flowcell sales, particularly in China. Despite this, Bionano saw growth in its OGM installed base, which increased by 16 systems to a total of 363, and announced the acceptance of a Category 1 CPT code by the American Medical Association. This development is expected to enhance the adoption of its optical genome mapping technology.
In an effort to counteract the revenue dip, Bionano is implementing cost-saving measures, with plans to reduce annualized non-GAAP expenses by $65-75 million by Q1 2025. The company is also advancing its clinical studies program, including the Heme trial, and is set to improve its workflow and data analysis processing times by Q4 2024.
These recent developments also include a deal with Revvity for newborn sequencing research software, which could potentially lead to future revenue and margin growth. However, full-year revenues are anticipated to be at the lower end of the range due to the slowdown in the Chinese market. Despite these challenges, Bionano remains on track to meet its installed base goal of 381-401 systems by the end of the year.
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