PacBio (NASDAQ: PACB) has received another downgrade following the company’s announcement of lowered full-year outlook and missed Q1 results.
JPMorgan downgraded PACB shares to Neutral from Overweight, citing persistent pressure on the company’s shares due to investors’ expectations for execution and data demonstrating the market opportunity for the Revio gene sequencing system.
PacBio pre-announced its Q1 results last week, with revenues of $38.8 million, largely unchanged from the prior-year period and below Wall Street estimates of $50.27 million. All regions underperformed, leading to a series of factors contributing to the miss, including macroeconomic pressures, slower Revio adoption by new customers, procurement delays, and reduced consumable revenue.
PacBio also lowered its 2024 revenue outlook to $170-$200 million, below the Street forecast of $239 million and its previous guidance of $230-$250 million. JPMorgan retracted its December 24 price target on the stock, stating that ‘the macro backdrop will continue to adversely impact placements and the ability to expand margins in the near-term.’
Shares of PacBio declined over 3% in premarket trading on Monday. Seeking Alpha’s Quant system has rated the stock as ‘Strong Sell.’
