Twist Bioscience (TWST) has unveiled its new Trinity Freestyle Fast Hybridization workflow in collaboration with Element Biosciences, providing a streamlined sequencing solution for researchers. The expanded agreement grants Twist exclusive access to this workflow, strengthening its position in genomics.

While the enhanced partnership with Element Biosciences highlights Twist Bioscience’s innovative push in genomics, the market reaction has been mixed. Over the past year, shareholders have seen a total return of -40%, and shares recently slipped by 8.4% in a single day. This performance suggests that sentiment is still cautious despite the company’s ambitious moves, and momentum has yet to firmly rebound.

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With shares trading well below analyst targets but investor caution still evident, the key question becomes: Is Twist Bioscience currently undervalued, or is the market simply reflecting the company’s long-term growth prospects?

Most Popular Narrative: 29.6% Undervalued

With the most recent fair value estimate set well above the last close, the popular narrative sees ample upside for Twist Bioscience compared to today's market price. This sets the stage for a closer look at what is driving analysts to signal such a large valuation gap.

Expansion of Twist's customer base, especially among smaller academic clients and long-tail customers, combined with the successful rollout of new synthetic biology (SynBio) product lines, is likely to drive sustained top-line growth and broaden the company's addressable market, positively impacting future revenue. High demand from large pharma, biotechnology, and clinical diagnostic customers for personalized medicine, genomics, and next-generation sequencing (NGS) services continues to accelerate, supported by long-term increases in global life sciences R&D investment, which should fuel ongoing revenue growth and earnings stability.

Want to know what’s fueling this bullish target? The narrative is built on rapidly expanding commercial opportunities, margin breakthroughs, and forward-looking financial bets that could reset the bar for biotech valuations. Curious which core assumptions are driving such optimism? Dive in to uncover the hidden numbers and see why this valuation could surprise the market.

Result: Fair Value of $40.00 (UNDERVALUED)

However, persistent losses and ongoing customer concentration still pose challenges. These issues could derail the narrative if not addressed successfully.

Build Your Own Twist Bioscience Narrative

If you have a different view or want to take a hands-on approach, it's quick and straightforward to build your own analysis from the same data. Just get started and Do it your way.

A great starting point for your Twist Bioscience research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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.