Twist Bioscience (TWST) PT Raised to $62 at Scotiabank

Scotiabank analyst Sung Ji Nam raised the price target on Twist Bioscience (NASDAQ: TWST) to $62.00 (from $54.00) while maintaining a Sector Outperform rating.

The analyst commented: "F1Q25 results beat consensus and guidance across the board. Most notably, gross margins for the quarter exceeded prior gross margin guidance for the full year. FY25 guidance (Exhibit 3) was also raised across the board, calling for total revenue growth of +19-21% y/y (vs. +17-20% prior), gross margins of ~49% for the full year and >50% for F4Q25 (vs. ~48% for the full year and ~50% for F4Q25 prior), and adjusted EBITDA loss improvement of ~$36mm (vs. ~$31mm prior). We are encouraged by the continued strong momentum for both SynBio (driven by the Express portfolio) and NGS (driven by liquid biopsy and rare disease applications) in the current macro environment, with both segments still in the early stages of addressable market penetration. On the bottom line, TWST remains laser-focused on achieving profitability, and we estimate is more than sufficiently capitalized to achieve adjusted EBITDA profitability (inclusive of the continued disciplined investments in Biopharma and DNA Data Storage) over the next ~24 months. TWST had ~$271mm in cash exiting F1Q25 (vs. ~$276mm at the end of F4Q24). We are raising our FY25 and FY26 revenue estimates and price target to $62 (from $54). Reiterate Sector Outperform."

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