Cowen Believes Berkeley Lights' (BLI) Drop of 35% This Week 'May Be a Bit Much'
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Cowen analyst Doug Schenkel provided a company update on Berkeley Lights, Inc. (NASDAQ: BLI), mentioning that the recent share pullback (more than 35% lower from Tuesday’s close) following a short-seller report from Scorpion Capital "may be a bit much." The stock is now down over 70% year-to-date.
The catalyst for the significant share price drop (today closing 11.61% lower) seemingly is heightened investor concern about some issues that reemerged recently, including, but not limited to, the fact that the pace of instrument placements have failed to meaningfully accelerate over the past few quarters and consumable revenue declined in Q1 and Q2 relative to Q4 levels.
According to the brokerage, some investors have questioned if a change in business model can succeed and noted there has been limited evidence to suggest early efforts pursuant to a less capital-intense revenue model is gaining traction.
Schenkel reiterated his Outperform rating on the stock.
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