Bionano Genomics Upgraded to Buy with $8 Price Target

Bionano Genomics has been upgraded to Buy from Hold by Maxim analyst Jason McCarthy, with an $8 price target. The company has taken steps to get back on track, including cost reductions, refocusing on its core business, and securing cash runway into Q1 of FY26. Optical genome mapping is gaining traction at leading institutions and generating publications.

On May 20, 2025, Maxim Group analyst Jason McCarthy upgraded Bionano Genomics (BNGO) from a Hold to a Buy rating, setting an $8.00 price target. This upgrade comes amidst a series of strategic developments and positive indicators, positioning Bionano as a potential investment opportunity.

The upgrade reflects an 88.39% upside from the current price of $3.79/share, based on a one-year price target averaging $7.14/share, ranging from $4.04 to $10.50 [1]. Maxim Group's positive outlook is supported by a projected annual revenue of $141MM, a 393.92% increase, and a projected annual non-GAAP EPS of -0.40 [1]. The company has also seen a significant increase in institutional ownership, with 38 funds or institutions reporting positions, up from 25 in the last quarter, and a total of 150K shares owned by institutions, down 95.15% from the previous quarter [1]. The put/call ratio of 0.01 indicates a bullish sentiment among investors [1].

Bionano Genomics reported its Q1 2025 financial results, showing mixed performance. Total revenue decreased 26% to $6.5 million, primarily due to the discontinuation of clinical services and lower instrument sales. However, the company improved its GAAP gross margin to 46% from 32% year-over-year. Operating expenses decreased significantly by 66% to $11.4 million, and the installed base grew to 379 OGM systems, a 9% increase from Q1 2024 [3]. The company also raised additional capital through a $10 million Registered Direct Offering and $3.2 million in ATM sales, extending its cash runway into Q1 2026 [3].

Bionano's Optical Genome Mapping (OGM) technology continues to gain scientific credibility, with multiple peer-reviewed publications in Q1 2025. The International Consortium for Optical Genome Mapping published expert recommendations for integrating OGM as a standard-of-care cytogenetic assay for diagnosing blood cancers. Several high-impact studies demonstrated OGM's clinical utility, validating its accuracy and cost-effectiveness [3]. With 82% of flowcell sales now going to routine users, Bionano appears to be successfully targeting facilities that recognize OGM's clinical utility.

In conclusion, Bionano Genomics' strategic shifts, cost reductions, and positive financial fundamentals, coupled with the increasing scientific validation of its OGM technology, make it a compelling investment opportunity. The company's focus on routine users and its improved operational efficiency present a more sustainable operational model, though ongoing revenue challenges suggest the transformation remains a work in progress.

References:
[1] https://www.nasdaq.com/articles/maxim-group-upgrades-bionano-genomics-bngo
[2] https://www.gurufocus.com/news/2877236/bionano-genomics-bngo-receives-buy-rating-and-price-target-upgrade-bngo-stock-news
[3] https://www.stocktitan.net/news/BNGO/bionano-reports-first-quarter-2025-results-and-highlights-recent-qz75nzggwy2n.html