Twist Bioscience Corporation's Share Price May be Undervalued by 27%

Twist Bioscience Corporation's projected fair value is estimated to be $47.54 based on 2-stage free cash flow to equity. The company's current share price of $34.69 suggests that it may be 27% undervalued. The analyst price target of $48.42 is 1.8% higher than the estimated fair value.

Twist Bioscience Corporation (TWST) is set to release its Q3 2025 earnings results on August 4th, with analysts expecting an earnings per share (EPS) of ($0.54) and revenue of $95.52 million. The company's stock has been the subject of recent attention due to its innovative products and strategic partnerships. This article aims to provide a neutral analysis of Twist Bioscience's current valuation, focusing on its projected fair value and undervaluation.

Projected Fair Value and Undervaluation

The projected fair value of Twist Bioscience Corporation is estimated to be $47.54 based on a 2-stage free cash flow to equity model. This estimation suggests that the company's current share price of $34.69 may be undervalued by approximately 27%. The analyst price target of $48.42 is 1.8% higher than the estimated fair value, indicating a slight optimism among analysts.

Analyst Sentiment and Price Targets

Analyst sentiment towards Twist Bioscience is generally positive, with a consensus rating of "Moderate Buy" and an average price target of $50.40. However, several analysts have recently revised their price targets downward, reflecting a cautious approach to the company's earnings potential. For instance, Barclays reduced their price target from $58.00 to $45.00, while Guggenheim maintained a "buy" rating with a target price of $50.00 [1].

Financial Performance and Guidance

Twist Bioscience reported a loss of ($0.66) EPS in its previous earnings announcement on May 5th, missing estimates but surpassing revenue expectations with $92.79 million. The company has set its Q3 2025 guidance at EPS and its FY 2025 guidance at EPS. Analysts expect Twist Bioscience to post $-2 EPS for the current fiscal year and $-2 EPS for the next fiscal year [1].

Innovation and Strategic Partnerships

The company's recent rollout of the FlexPrep Ultra-High Throughput Library Kit is set to revamp the fields of agrigenomics and genomics with affordable and effective options for researchers. Additionally, Twist Bioscience's collaboration with Absci Corporation to explore new AI-driven therapeutic avenues showcases a blend of innovation in DNA synthesis and treatment designs [2].

Conclusion

While Twist Bioscience Corporation faces challenges in maintaining profitability, its innovative products and strategic partnerships position it as a leader in its industry. The projected fair value of $47.54 suggests that the company's current share price may be undervalued, offering potential value for investors. However, investors should closely monitor the company's earnings results and financial guidance to make informed investment decisions.

References

[1] https://www.marketbeat.com/instant-alerts/twist-bioscience-twst-to-release-earnings-on-monday-2025-07-28/
[2] https://www.timothysykes.com/news/twist-bioscience-corporation-twst-news-2024_11_18/