Twist Bioscience (TWST) is back in focus after announcing a licensing deal with Invenra that brings the B-Body bispecific antibody platform under a co-exclusive arrangement, directly expanding Twist’s antibody discovery service offering.
See our latest analysis for Twist Bioscience.
The licensing news lands after a strong run, with the latest share price at $46.92, a 30 day share price return of 11.69% and a 90 day share price return of 46.58%. Looking further out, the stock shows a 1 year total shareholder return of 20.87% and a 3 year total shareholder return of 141.36%. However, the 5 year total shareholder return of a 60.09% loss highlights that momentum has only more recently turned positive.
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After this licensing deal, a sharp 3 month move and with shares sitting close to the average analyst target of $49.89, investors may ask whether there is still a buying opportunity here or if the market is already pricing in future growth.
Most Popular Narrative: 31.7% Overvalued
The most followed valuation narrative for Twist Bioscience pegs fair value at $35.63, well below the last close at $46.92. It therefore characterizes the recent strength as stretching the price above its modeled range.
Significant improvements in gross margin (now above 50%) through volume leverage, process improvements, and increased vertical integration signal ongoing margin expansion and a clear near term path toward adjusted EBITDA breakeven, indicating robust future earnings potential.
Want to see what kind of revenue path, margin rebuild, and future earnings multiple that narrative is baking in, and how those moving parts stack up to today’s price?
Result: Fair Value of $35.63 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, the story could change quickly if Twist stays loss making with adjusted EBITDA losses in 2025, or if revenue from a few large NGS customers falls away.
Find out about the key risks to this Twist Bioscience narrative.
Next Steps
Given the mixed signals around valuation and profitability, it makes sense to look under the hood yourself and move quickly to form your own stance. You can start with 2 key rewards and 2 important warning signs.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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