Goldman Sachs downgraded Ginkgo Bioworks to Sell from Neutral with a price target of $1.25, down from $3, which represents 26% downside from current levels. The analyst believes the end market shift towards biopharma and agriculture is a “sound long term strategy” Ginkgo, but says the macro environment and softening spend in the biopharma end market may result in slower new program growth for the company. The current economic environment, coupled with “subdued” capital markets activity may restrain spend in the biopharma end market which will impact Ginkgo’s program growth, putting additional stress on its biosecurity revenue in order to maintain their revenue targets, says Goldman.
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