Market Overview

Pacific Biosciences Has 'Long Road' Ahead, But Cantor Still Bullish

  • Cantor Fitzgerald reiterated a Buy rating and $9.00 price target on shares of Pacific Biosciences of California (NASDAQ: PACB) on Thursday.
  • The reiteration follows Wednesday night’s announcement of the introduction of the Sequel System.
  • Shares of Pacific Biosciences were up more than 42 percent on Thursday.

On Wednesday evening, the company launched a new nucleic acid sequencing platform called the Sequel (TM) System, which “provides higher throughput, more scalability, a reduced footprint and lower sequencing project costs” compared to the company’s previous system.

This new system should strengthen the small-cap company’s competitiveness versus Illumina, Inc. (NASDAQ: ILMN)’s portfolio of systems, analyst Bryan Brokmeier said.

Although Pacific Biosciences still has a long way to go (data collection wise) to reach Illumina’s level of support from physicians and researchers, the company “has seen increasing interest in the human sequencing market since it first announced its collaboration with Roche two years ago, particularly over the last year,” the report adds. Moreover, launch timing seems just right, ahead of the annual American Society of Human Genetics (ASHG) conference, to be held between October 6 and October 10.

The research note goes on to assure that the introduction of Sequel System should provide a boost for revenue growth and profitability. In addition, the launch moves the Roche development timeline forward, Brokmeier said. “The Sequel System is the basis for the IVD instrument that PACB has been developing in collaboration with Roche, which is expected to be launched in 2H16.” Pacific Biosciences now anticipates it will receive the remaining $20 million (up from a previously expected $10 million) in milestone payments during the fourth quarter of the year.

“Some of the initial deliveries in 4Q15 are planned to be delivered to Roche as it expands its IVD assay development,” the report continued. The analysts still expect Roche “to take delivery of more than 10 instruments in 2016.”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for PACB

Apr 2019DowngradesOverweightEqual-Weight
Jan 2019DowngradesOutperformMarket Perform
Nov 2018DowngradesOverweightNeutral

View More Analyst Ratings for PACB
View the Latest Analyst Ratings

Posted-In: Bryan BrokmeierAnalyst Color Health Care Small Cap Analysis Reiteration Analyst Ratings Trading Ideas General


Related Articles (ILMN + PACB)

View Comments and Join the Discussion!

Latest Ratings

PNRJefferiesInitiates Coverage On
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

How To Trade Bank Earnings Season

BB&T Acquires Stake in Lloyd's Broker