Twist Bioscience Shows Promising Growth with High Demand

Twist Bioscience's Positive Market Outlook and Pricing Strategy

Twist Bioscience Corporation (NASDAQ:TWST) has recently been placed under the spotlight following its continued Outperform rating, along with an optimistic price target of $46.00 from Baird. A thorough evaluation of the company's Express Genes pricing reveals a strong demand that remains consistently high. In September, academic clients reported an average premium of approximately 43%, while the industry as a whole experienced an even loftier average of about 75%.

The insights into pricing trends are part of a regular monitoring approach by Baird, which seeks to highlight the extra costs that clients are prepared to pay for swift delivery of synthetic genes provided by Twist Bioscience. Data collected through the month of September showcased robust interest in the company's Express Genes service, aligning well with the growing demand for its products in the biotech arena.

Robust Revenue Growth and Strategic Developments

Baird's findings have prompted a dynamic outlook on the demand landscape for Twist Bioscience. While the firm stopped short of making specific predictions about the company's overall synthetic genes revenue or gross margin potential, the elevated pricing premiums undeniably point toward a strong market position for Twist.

Recently, Twist Bioscience revealed a remarkable 28% year-over-year revenue increase for its fiscal third quarter, reaching a whopping $81.5 million. Additionally, the company's gross margin saw a significant enhancement, ascending to 43.3%. Twist aims to push this figure beyond 50% by the close of fiscal 2025. With expectations for a 27% total revenue uplift for the fiscal year, the projections for Q4 are promising, ranging between $82 million and $83 million.

Expansion of Capabilities and New Collaborations

Continuing to innovate, Twist Bioscience has recently announced an expansion of its DNA synthesis capabilities, now offering gene fragments that extend up to 5.0 kilobases. This enhancement allows for greater flexibility and possibility in biotech applications. Furthermore, the company has also partnered with bitBiome Inc. to introduce a Transaminase Enzyme Screening Kit, catering to the industry's need for environmentally friendly solutions when synthesizing chiral amines, essential components for drug manufacturing.

Investors’ Insights and Financial Strength

In addition to Baird's affirming outlook, other perspectives such as recent data from InvestingPro show that Twist Bioscience is holding a market capitalization of around $2.65 billion, indicating its significant role in the biotechnological landscape. With an impressive revenue growth rate of 25.37% over the last twelve months by Q3 2024, and an even higher 27.81% quarterly growth observed in Q3, the numbers reflect the sustained demand corroborated by Baird's report.

InvestingPro observes that over the past year, Twist Bioscience has achieved a total return of 123% on its stock price, a testament to the strong performance tied closely to the high demand for its offerings. Furthermore, the financial underpinning is sound, as their liquid assets comfortably cover short-term obligations, ensuring the company is well-poised to handle increasing market demand for its Express Genes service.

Frequently Asked Questions

What is the current rating for Twist Bioscience shares?

Twist Bioscience shares maintain an Outperform rating from Baird, with a price target set at $46.00.

How has Twist Bioscience performed in revenue growth recently?

The company reported a 28% year-over-year revenue increase totaling $81.5 million for its fiscal third quarter.

What are the new developments at Twist Bioscience?

Twist has expanded its DNA synthesis capabilities and launched a Transaminase Enzyme Screening Kit in collaboration with bitBiome Inc.

What kind of premium does Twist Bioscience charge for its services?

Twist Bioscience's Express Genes service has seen pricing premiums average around 43% for academic clients and 75% in the broader industry.

How does Twist Bioscience's financial position look?

Twist Bioscience maintains a solid financial position, with liquidity to cover short-term obligations, supporting its ongoing growth.

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