What Happened?
Shares of biotech company 10x Genomics (NASDAQ: TXG) fell 2.4% in the afternoon session after the stock extended its negative momentum as Piper Sandler initiated coverage of the stock with a Neutral rating and a $15.00 price target.
While the research firm acknowledged that 10x Genomics has a leading offering in the single-cell market with significant technological advantages, it expressed concerns about the company's near-term performance. The primary issue cited was ongoing price compression within the market. Piper Sandler recommended that investors wait for the company to navigate the current macroeconomic environment before investing. This cautious outlook suggests potential headwinds, as the firm also noted that the related spatial market may take several years to fully develop, tempering enthusiasm for the stock's immediate growth prospects.
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What Is The Market Telling Us
10x Genomics’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 2.1% on the news that Piper Sandler initiated coverage on the stock with a Neutral rating and a $15.00 price target.
10x Genomics is down 9.9% since the beginning of the year, and at $12.78 per share, it is trading 45.6% below its 52-week high of $23.48 from September 2024. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $105.70.
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