The shares of cell programming platform company Ginkgo Bioworks (NYSE:DNA) continued to trade higher in the pre-market Tuesday with a ~21% rise as Wall Street responded to its Q2 2022 financials, which included a topline beat and a guidance raise.
Revenue for Q2 2022 jumped ~231% YoY to $145M as Foundry revenue, and Biosecurity revenue added $44M and $100M with ~105% YoY and ~231% YoY growth, respectively.
The company also raised its 2022 revenue outlook to $425M-440M from $375M–390M to surpass the Street forecasts.
Cowen analyst Steven Mah who has an Outperform rating and a $12 per share target on DNA, notes that higher than expected COVID-19 testing propelled biosecurity revenues.
However, Mah points out that the company reaffirmed the guidance for Foundry revenue and the target of 60 programs to be added.
Noting the significance of 13 new projects the company added during the quarter, Raymond James argues that DNA is well on its track to reaching the guidance of 60 new projects this year.
Therefore with confidence in the company’s ability to get close to 500 new projects in 2025, the analysts Rahul Sarugaser and Michael Freeman raised their estimate to 430 programs from 350 for the year and increased the price target on DNA to $14.50 from $11.50 per share.
“With DNA’s continued outperformance, the Street is beginning to see that this cell programing thing is real,” they concluded, reaffirming the Outperform rating on the stock.
Ahead of the earnings, Seeking Alpha contributor Real Investments noted that DNA’s underappreciated valuation gave “investors an opportunity to get in on the ground floor in order to make substantial gains.”