10x Genomics (TXG) announced a partnership with SPT Labtech focused on automating single-cell research workflows. By integrating SPT’s liquid handling system, the collaboration aims to increase scalability and efficiency for researchers.

10x Genomics’ collaboration with SPT Labtech arrives as the company’s stock continues to face pressure, with a year-to-date share price return of -16.63% and a tough one-year total shareholder return of -23.38%. Despite upbeat reaction to the new partnership, long-term performance has lagged significantly, reflecting ongoing challenges and a shift in investor sentiment. However, momentum could turn if recent innovations deliver.

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With shares down sharply over the past year but now trading nearly 27% below analyst price targets, the question for investors is clear: is this recent weakness a buying opportunity, or is the market already factoring in 10x Genomics’ future growth?

Most Popular Narrative: 21.5% Undervalued

With a fair value estimate of $15.08 and a recent closing price of $11.83, the most widely followed narrative suggests 10x Genomics is trading well below its projected worth. This substantial discount has fueled debate about what is actually driving the company’s valuation and what needs to go right for a turnaround.

The acquisition of Scale Biosciences broadens 10x Genomics' technical capabilities in single-cell analysis, allowing integration of foundational innovations like combinatorial indexing and quantum barcoding. This may accelerate innovation, reduce costs, and open up new high-value markets, positively impacting future revenue growth and margins.

Want to see what could spark a jump in value? The blueprint behind this price target relies on ambitious improvements to profit margins, future growth, and an industry-matching profit profile. The most surprising piece is how optimistic long-term assumptions make this valuation work.

Result: Fair Value of $15.08 (UNDERVALUED)

However, continued weakness in research funding or persistent pricing pressure for instrumentation could quickly shift sentiment and challenge the outlook for a turnaround.

Build Your Own 10x Genomics Narrative

If you're interested in forming your own perspective or challenging the consensus, the tools are available to quickly build your own outlook. Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding 10x Genomics.

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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.