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Saturday, 06/26/2021 8:59:56 AM

Saturday, June 26, 2021 8:59:56 AM

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Singular Genomics Systems - >>> Buy These 3 New Stocks Before They Jump Over 40%, Says Goldman Sachs

Yahoo Finance

June 22, 2021

Singular Genomics Systems (OMIC)

Last but not least is Singular Genomics, a life sciences company working on next generation sequencing (NGS) and multiomics technologies, the tools that will build the next wave of genetically-based products and medicines. The company has a proprietary sequencing platform, and brings to the table an integrated solution it calls PX. The PX integrated solution makes use of genomics, cell analysis, spatial analysis, and proteomics on an integrated instrument.

The PX Integrated Solution is one of Singular Genomics’ pipeline products, and is scheduled for commercial release in 2023. The company is also working on the G4 Instrument, a benchtop next gen sequencer optimized for fast and accurate results in genetic sequencing tests. The G4 Instrument is packaged with a menu of consumable kits. The project is on track for early access and a commercial launch by the end of this year, with the first units shipping to customers in 1H21.

Singular Genomics held its IPO to raise capital – and it did so successfully. The initial pricing was $22 per share for 10.2 million shares put on the market. As is usually done, the underwriters had an option on additional shares, 1.53 million in this case, at the same price. Singular Genomics is expected to generate pre-expense funds of $224.4 million. They beat that number. The IPO officially brought in $258.1 million, before deductions. The stock shares started on the market on May 27, and the IPO closed on June 1.

Analyst Matthew Sykes, in his report on this stock for Goldman Sachs, points out several factors that indicate strong growth ahead:

“1) Differentiated technology: The OMIC Sequencing Engine incorporates a number of innovations providing a competitive advantage to the incumbent instruments. We see the primary differentiation in the sequencing chemistry OMIC has developed resulting in better performance across a number of metrics relative to the current competition.

“2) Better performance: In internal and external testing environments the G4 has shown to have a performance advantage in cycle time and data output as compared to the incumbent technologies…

“3) Attractive market opportunity: The global NGS market is estimated to grow at a 19% CAGR reaching $18.6bn by 2026... We believe OMIC has a significant opportunity to address the need for an alternate supplier and for additional sequencing capacity in the market.”

Based on the above, Sykes gives OMIC shares a Buy rating to start out with, while his $35 one-year price target implies ~49% upside from current levels. (To watch Sykes’ track record, click here)

Overall, OMIC has picked up 4 reviews in its short time on the market, and they break down 3 to 1 in favor of Buy versus Hold – for a Strong Buy consensus rating. The shares are priced at $23.16 and the average price target of $30.33 implies an upside of ~29% for the coming 12 months.


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