Why Bionano Stock Is ‘Underappreciated,’ According to Oppenheimer

 Why Bionano Stock Is ‘Underappreciated,’ According to Oppenheimer

2021 was a big year for Bionano (BNGO). The spotlight shone on the life sciences company based on its potential to transform the cytogenetics space with the help of its genome imaging system Saphyr.

Alongside the real-world progress, BNGO stock has been on a wild ride. The shares soared to improbable heights at the start of year, but have been on a downtrend since and now sit 80% below the February highs.

That said, Oppenheimer’s Kevin DeGeeter believes that behind the volatility lies an “underappreciated message.”

“Management is executing against the cytogenetics adoption thesis,” the 5-star analyst said. “BNGO is on track to meet or exceed its 2021 Saphyr placement goal of 150-plus (our estimate is 156). Multiple clinical validation studies to support reimbursement are enrolling well and commercial adoption is leading to higher consumable pull-through that should impact 4Q21 and 2022.”

That last point is important. Last week, the company disclosed that the University Hospitals Leuven in Belgium will expand its BELAC (Belgian Accreditation Body) accredited menu to include OGM (optical genome mapping) in analysis of acute myeloid leukemia (AML), chronic lymphocytic leukemia (CLL) and facioscapulohumeral muscular dystrophy (FSHD). This follows on from an accreditation to use OGM in analysis of acute lymphoblastic leukemia (ALL).

DeGeeter believes this should “drive an uptick” in consumables beginning this quarter. Highlighting time and cost-savings as the most attractive competitive advantages of OGM, by using Saphyr, Leuven is currently on-course to attain its goal of 500 samples per year.

Leuven is one of a number of European labs completing accreditation. Saphyr adoption in Europe has taken off faster than it has in the US with labs in Belgium, Spain, and Germany pursuing accreditation.

As each high-volume lab is anticipated to process 300–500 samples a year, at $400–500 per sample, annual consumables from one lab could generate around $180,000 at the midpoint. The analyst estimates the European adoption has supported year-over-year growth of 29% for consumables over the last year.

DeGeeter also sees the shares clawing back most of the year’s early gains. Based on his $14 price target, the stock will surge ~349% over the coming months. The analyst’s rating stays an Outperform (i.e., Buy). (To watch DeGeeter’s track record, click here)

DeGeeter’s forecast mirrors that of his colleagues. While the average price target is a more modest $12, its still factors in upside of 260%. Additionally, with two other recent positive reviews, the stock boasts a Strong Buy consensus rating. (See BNGO stock forecast on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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