On Tuesday, Twist Bioscience (NASDAQ:TWST) Corporation (NASDAQ:TWST) shares maintained its Outperform rating and a $46.00 price target from Baird. The firm's latest review of the company's Express Genes pricing premiums showed a consistent elevated demand for their offerings. During the month of September, the average premium for academic clients stood at approximately 43%, while the industry sector saw an even higher average premium of around 75%.
The analysis of the pricing premiums is part of an ongoing daily monitoring by Baird. The firm tracks the additional costs that customers are willing to pay for the expedited delivery of synthetic genes provided by Twist Bioscience. The data collected throughout September indicates a robust demand for the company's Express Genes service.
Baird's commentary on the findings suggests a positive outlook for Twist Bioscience's demand trends. Although the firm refrained from drawing direct conclusions about the potential impact on the company's overall synthetic genes revenue or cumulative gross margin percentage, the high pricing premiums are seen as an encouraging sign for the company's market position.
Investors and industry watchers interested in the detailed data on Twist Bioscience's pricing premiums are invited to contact a Baird representative for more information. The firm's analysis provides a snapshot of the market's valuation of the company's expedited service offerings, which could be indicative of customer valuation and demand for Twist Bioscience's products.
In other recent news, Twist Bioscience reported a robust 28% year-over-year growth in revenue for the fiscal third quarter of 2024, totaling $81.5 million. The company's gross margin also improved significantly to 43.3%, with a target to exceed 50% by the end of fiscal 2025. Twist Bioscience anticipates a 27% increase in total revenue for fiscal 2024 year-over-year, with projected Q4 revenue between $82 million and $83 million.
Baird maintained an Outperform rating on Twist Bioscience, observing an increase in the average premium charged to academic institutions for the company's Express Genes service. The firm's analysis suggests that the sustained high premiums could indicate strong demand for the company's synthetic genes offering.
Twist Bioscience has also announced an expansion in its DNA synthesis capabilities, now offering gene fragments up to 5.0 kilobases in length. In addition, the company has launched a Transaminase Enzyme Screening Kit in collaboration with bitBiome Inc., which aims to provide a more environmentally friendly alternative for synthesizing chiral amines, key components in drug manufacturing. These are recent developments in Twist Bioscience's operations and strategic initiatives.
InvestingPro Insights
To complement Baird's positive outlook on Twist Bioscience Corporation (NASDAQ:TWST), recent data from InvestingPro offers additional context for investors. The company's market capitalization stands at $2.65 billion, reflecting its significant presence in the biotechnology sector. Twist's revenue growth is noteworthy, with a 25.37% increase over the last twelve months as of Q3 2024, and an even stronger 27.81% quarterly growth in Q3 2024. This aligns with the high demand for Express Genes noted in Baird's analysis.
InvestingPro Tips highlight that Twist Bioscience has experienced a "high return over the last year," with a remarkable 123% price total return over the past year. This substantial growth may be attributed to the strong demand for its products, as evidenced by the pricing premiums discussed in the article. Moreover, the tip that "liquid assets exceed short term obligations" suggests a solid financial position, which could support the company's ability to meet the increasing demand for its Express Genes service.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Twist Bioscience, providing a deeper understanding of the company's financial health and market position.
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