Ginkgo Bioworks Stock Has 37.5% Downside, According to 1 Wall Street Analyst

Ginkgo Bioworks (NYSE: DNA) stock has dropped more than 10% since its latest quarterly report showing a more than 53% decline in Q1 revenue and continued net losses from its business. BTIG analyst Mark Massaro downgraded Ginkgo stock to sell, and lowered his price on this biotech penny stock to just $0.50. It closed Friday at $0.80, so that would be a 37.5% drop. Why rate Ginkgo stock a sell? Where shall I begin?Massaro is most concerned with management commentary that new "cell programs" -- of which the company expects to add 100 this year -- are no longer a great forecaster of revenue growth, and may give investors a false impression of the company's revenue growth rate. The analyst wrote that it will be "difficult to model how new cell program adds will flow into revenue growth in 2024, 2025, and beyond." For that reason, as well as a change in business plan to offering "lab data as a service," Massaro feels it's safest to avoid the stock for now.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Zum vollständigen Artikel