Bionano Genomics (BNGO) Upgraded to Buy by Maxim Group: Analyst Price Forecast Suggests 88.39% Upside

Maxim Group upgraded its outlook for Bionano Genomics (BNGO) from Hold to Buy, with an average one-year price target of $7.14/share, representing an 88.39% increase from its latest closing price of $3.79/share. The projected annual revenue for BNGO is 141MM, an increase of 393.92%. Total shares owned by institutions decreased by 95.15% to 150K shares. The put/call ratio of BNGO is 0.01, indicating a bullish outlook.

Bionano Genomics Inc. (BNGO) has seen a significant upgrade in its financial outlook from Maxim Group, which has revised its recommendation from "Hold" to "Buy" with an average one-year price target of $7.14 per share. This represents an 88.39% increase from the stock's latest closing price of $3.79 per share [1]. The projected annual revenue for BNGO is 141 million, indicating a 393.92% increase from previous estimates. Additionally, the number of shares owned by institutions has decreased by 95.15% to 150,000 shares, and the put/call ratio of 0.01 suggests a bullish outlook for the stock.

The upgrade in the outlook comes amidst Bionano's reported challenges in maintaining sales momentum. The company projected its second-quarter revenue to fall between $6.3 million and $6.8 million, which is below the consensus revenue forecast of $7.01 million [2]. However, the company has shown signs of improvement in its financial health, with a significant increase in GAAP gross margin for Q4 2024, rising to 42% from 23% in Q4 2023. Additionally, the company has successfully reduced its GAAP operating expenses to $15.4 million in Q4 2024 from $27.4 million in Q4 2023, primarily due to cost-saving initiatives [2].

Bionano has also seen an increase in consumable sales by 14% in 2024, indicating strong demand for its products. The company has extended its cash runway into Q1 2026, providing financial stability and flexibility for future operations. However, the company experienced a reduction in instrument sales by nearly $2 million, impacting overall revenue growth. Bionano is focusing on a smaller group of routine users, which may limit immediate customer base expansion.

The upgrade in the outlook from Maxim Group reflects the company's strategic shift towards its core optical genome mapping (OGM) systems and VIA(TM) software. This shift has led to a notable increase in the purchase of consumables by established users, contributing to year-over-year growth. The company has also seen significant cost reductions and improved cash management, further supporting its financial health.

Looking ahead, Bionano expresses confidence in sustaining operational efficiency and market development, which are anticipated to drive ongoing progress. The company's focus on routine OGM users and its commitment to enhancing revenue and gross profit through this base is expected to contribute to its future growth.

References:
[1] https://www.gurufocus.com/news/2863841/bionano-genomics-bngo-forecasts-lower-q2-revenue-than-expected-bngo-stock-news
[2] https://www.gurufocus.com/news/2864006/bionano-genomics-bngo-sees-strategic-shift-boost-in-q1-2025-bngo-stock-news