BioNano Genomics Inc (NASDAQ: BNGO) has had a remarkable year of trading, gaining over 979% over the past two months. The company operates in the analytical instruments field, in particular cytogenomics. Simply put, this is the detection of genetic disorders by analyzing the variances in chromosomes. BioNano have developed the Saphyr platform, which has been a catalyst in attracting investors on Wallstreet. Furthermore, a recent upgrade from analysts has sent another wave of confidence for investors moving into 2021. This article will breakdown everything you need to know about the Bionano Genomics (BNGO) stock forecast for 2021.
Table of contents
What are analysts forecasting for BNGO stock in 2021?
Firstly, across the board of 4 Wallstreet analysts the general consensus remains a Buy (3 Buy ratings and 1 Hold). The average 12 month price target for BNGO stock is $4.44 a share, which suggests a downside potential of 59.84%. The low average 12 month price target is a product of the recent surge, of which only one analyst has updated their price target since. Prior to the surge, analysts suggested the stock had an upside potential of 130%+. Since the profound gains, analyst Jason McCarthy voiced his confidence in BNGO stock:
- 1/22/2021 Maxim Group – analysts Jason McCarthy boosted the 12 month price target from $2 to $14 a share. This upgrade suggests an upside potential of 27% from the current trading price. The price boost had a significant effect on investor sentiment, sending the stock 37% higher.
Financial outlook for BNGO stock in 2021 and beyond
Firstly, the revenue outlook for 2021 looks positive according to analyst forecasts. Currently, the average revenue forecast for 2021 is sitting at $18.5 million. This suggests a YOY growth in revenue of 136% according to Yahoo Finance data. However, the recent performance in the Q3 2020 earnings results was underwhelming. The total revenue for the quarter was $2.2 million, a decrease of 33.7% compared to the same period in 2019. BioNano noted the decrease is “largely driven by customers temporarily shutting down their lab operations in response to the COVID-19 pandemic.” It’s clear with analysts suggesting strong revenue growth in 2021, the improving COVID restrictions should play a positive role.
What this means for BNGO investors
To summarise, the analyst outlook for both the stock price and the revenue forecasts illustrate both bullish and bearish cases. As we move into 2021, BNGO will continue to gain more coverage from Wallstreet analysts. This will allow for a less skewed set of results for investors to work with. However, the current consensus remains bullish with analysts from Maxim Group seeing potential growth above the current trading price.
The revenue forecasts suggest positive growth in 2021, however the current performance from BNGO remains up for debate. The company continues to lose money with increasing costs. In contrast, most innovative/high growth companies will tend to do this as seen across the Bio-tech and EV industries. The Q4 earnings will provide investors a good indication as to whether BNGO is moving closer to its 2021 revenue forecasts or moving in the opposite direction.
Written by Tyger Fitzpatrick, Founder of Youth Investment Group.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.