Canaccord Genuity has maintained a bullish stance on 10X Genomics (NASDAQ: TXG), reiterating a Buy rating and a $32.00 price target.
The endorsement comes following the company's announcement of the Chromium Xo instrument launch, a lower-cost option for single-cell analysis.
The new product, unveiled after the market closed on Tuesday, September 3, is priced significantly lower than the firm's other offerings in the same category.
The Chromium Xo is aimed at increasing shipments by making the technology more accessible, especially under the current economic climate where capital equipment spending is under pressure.
Canaccord Genuity acknowledges that this move might suggest an adjustment in 10X Genomics' product strategy due to competitive factors and indicates that macroeconomic challenges could continue.
Despite these considerations, Canaccord Genuity sees the expansion of the installed base as a positive development.
They believe that 10X Genomics can subsequently upgrade users to more advanced single-cell platforms, which would lead to higher consumables revenue. With this strategy, the company is expected to bolster its long-term growth trajectory.
In other recent news, life science technology company, 10X Genomics, reported a revenue increase in its second-quarter earnings call for 2024. The company's total revenue for the quarter was $153 million, marking a 4% year-over-year growth and a 9% rise from the previous quarter.
Despite strong demand for spatial and single-cell consumables, 10X Genomics revised its full-year revenue guidance down to between $640 million and $660 million due to slower instrument sales, including its Xenium platform.
In response to these developments, Morgan Stanley adjusted its outlook on 10X Genomics, reducing its price target to $46.00 from the previous $50.00, while maintaining an Overweight rating on the stock. The firm cited the company's recent performance and revised guidance as reasons for the adjustment, noting the ongoing macroeconomic challenges and softer sales for its instruments.
In addition, the company made leadership changes, with Mennah Moustafa becoming Chief Commercial Officer and Adam Taich stepping in as the new CFO.
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