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May 12, 2023

Biotech stock Pacific Biosciences could return 50% in 12 months: TD Cowen

Biotech stock Pacific Biosciences (PACB) has been making waves in the industry lately, and according to TD Cowen, it could return 50% in just 12 months. Pacific Biosciences is a biotechnology company that specializes in DNA sequencing technology. The company's flagship product, the PacBio Sequel System, is a high-throughput DNA sequencing platform that allows researchers to study genetic variations and mutations in greater detail than ever before. TD Cowen, a leading investment bank, recently initiated coverage of Pacific Biosciences with an Outperform rating and a price target of $30 per share. This represents a potential upside of 50% from the current share price of around $20. So, why is TD Cowen so bullish on Pacific Biosciences? There are several factors at play. Firstly, the company's PacBio Sequel System is gaining traction in the market. Pacific Biosciences recently reported strong Q2 2021 earnings, with revenue up 83% year-over-year. The company also announced that it had shipped 50 Sequel IIe systems during the quarter, bringing its total installed base to over 200 systems worldwide. Secondly, Pacific Biosciences is well-positioned to benefit from the growing demand for DNA sequencing technology. As the cost of sequencing continues to decline, more and more researchers are turning to this technology to study genetic diseases, develop new drugs, and advance precision medicine. Finally, Pacific Biosciences has a strong pipeline of new products and applications in development. The company recently announced the launch of its HiFi reads for whole-genome sequencing, which promises to deliver more accurate and complete genome assemblies. Pacific Biosciences is also working on developing new applications for its technology, such as single-cell sequencing and epigenetics. Of course, investing in biotech stocks like Pacific Biosciences comes with risks. The industry is highly competitive, and there is always the risk that a new technology or product could disrupt the market. Additionally, regulatory hurdles and clinical trial failures can also impact the stock price. However, for investors willing to take on some risk, Pacific Biosciences could be a promising investment opportunity. With a strong product portfolio, growing market demand, and a solid pipeline of new products in development, the company is well-positioned for future growth. And with TD Cowen's bullish price target, investors could see a significant return on their investment in just 12 months.