If you're a fan of The Simpsons, the performance of Pacific Biosciences (NASDAQ:PACB)
(or "PacBio") may at times remind you of the Homer Simpson "bed goes
up, bed goes down" scene. While the company continues to make steady
progress in improving its systems and adoption and usage are both
increasing, the market has batted the stock around in response to
anticipated launch numbers, rumors of a buyout, and concerns over
competing systems.
My core thesis on PacBio remains
the same. This company has developed a sequencing technology that is
very good at doing a limited (but important and significant) number of
things within the overall sequencing opportunity. PacBio will never be
another Illumina (NASDAQ:ILMN) or Thermo Fisher/Ion Torrent (NYSE:TMO),
but it can grow to over $1 billion in revenue over time on the strength
of opportunities in areas like microbial/viral genetics, plant/animal
genetics, and human genetics and diagnostics (particularly oncology).
With that, I still believe a low double-digit fair value is reasonable.
Given the pullback in the shares since my last write-up, this looks like it may be a good time for some due diligence on the name.
Read the full article here:
Pacific Biosciences Looking More Interesting Once Again
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