Please ensure Javascript is enabled for purposes of website accessibility

Why Bionano Genomics Stock Popped Today

By Prosper Junior Bakiny - Jan 22, 2021 at 1:42PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Wall Street analyst's target-price hike may have had something to do with it.

What happened?

Shares of Bionano Genomics (BNGO -6.55%), a genome analysis specialist, have been on fire of late, skyrocketing by more than 1,500% over the past month. On Friday, the company extended that upward run: Its stock was up by 12% as of 1:33 p.m. EST, after jumping by as much as 16.7% earlier in the day.

The company did not report any news today, but it did receive positive coverage from a Wall Street analyst.

So what

Jason McCarthy of Maxim Group, a firm that provides equity research among other services, raised his price target for Bionano Genomics' stock to $14 from $2; he also kept a buy rating on the stock. Shares closed trading Thursday at $8.27, which means McCarthy still sees some upside for the stock.

Why did the analyst decide to increase his price target on this small-cap stock by 600%? In his note, McCarthy mentioned the recent presentations Bionano Genomics held that focused in part on the company's Saphyr Optical Genome Mapping Instrument. These presentations were instrumental in Bionano Genomics' recent rally as they helped build awareness for the company's potential in the fields of cytogenetics and genomics. 

Close up view of DNA strands.

Image source: Getty Images.

Now what

The Saphyr system has many potential applications. For instance, the healthcare company argues that it can help detect structural variations in solid tumors. This can, in turn, help the pharmaceutical industry develop better and more effective cancer medicines. These opportunities could be key growth drivers for Bionano Genomics in the long run. But this small-cap stock remains a risky bet, due in part to competition from other companies in this space. In short, it is worth keeping an eye on Bionano Genomics, but only investors with an above-average risk tolerance should consider initiating a position. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Bionano Genomics, Inc. Stock Quote
Bionano Genomics, Inc.
$1.57 (-6.55%) $0.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.