Twist Bioscience (TWST) PT Raised to $54 at Scotiabank

Scotiabank analyst Sung Ji Nam raised the price target on Twist Bioscience (NASDAQ: TWST) to $54.00 (from $50.00) while maintaining a Sector Outperform rating.

The analyst commented: "TWST wrapped up FY24 on a strong note, beating consensus and guidance across the board and exiting FY24 with ~$276mm in cash (excluding $15mm upfront payment received in October from Xoma as part of the royalty purchase agreement). Initial FY25 guidance calls for revenue growth of +17-20% y/y (driven by NGS and SynBio), gross margin of ~50% by F4Q25, and improvement in adjusted EBITDA by ~$30mm y/y. Looking ahead, we believe TWST remains well-positioned to continue to outperform its peer group under multiple macro scenarios, given both NGS and SynBio are still in the early stages of addressable market penetration, as well as TWST’s minimal exposure to capital equipment spending, China (~2% of sales), the NIH budget (<1% of sales), and OUS manufacturing (100% U.S. manufacturing). TWST’s continued execution on gross margin expansions throughout FY24 is notable, and we estimate is more than sufficiently capitalized to achieve profitability with cash on hand (further leverage from the non-dilutive Xoma deal for Biopharma and the continued highly disciplined approach to R&D investments, such as data storage). We are raising our FY25 revenue estimate, price target to $54 (from $50), and reiterating SO."

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