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Burning Rock Biotech Ltd (BNR) is not a strong buy at the moment for a beginner, long-term investor. The technical indicators are neutral to slightly bearish, the financial performance shows declining profitability, and there are no strong positive catalysts or proprietary trading signals. Given the lack of clear bullish sentiment and the upcoming earnings report, it is better to hold off on buying until more favorable conditions arise.
The MACD is below 0 and negatively contracting, indicating weak momentum. The RSI is neutral at 43.356, suggesting no clear overbought or oversold conditions. The moving averages are converging, showing no clear trend. The stock is trading near support levels (S1: 29.083), but the overall technical setup does not indicate a strong buy signal.
The gross margin increased by 5.18% YoY in Q3 2025, showing some operational efficiency improvement. Additionally, the stock has a 7.45% chance of increasing in the next month based on candlestick pattern analysis.
Net income dropped significantly (-53.12% YoY), and EPS fell by -54.29% YoY in Q3 2025, reflecting declining profitability. Analysts have downgraded the stock, with price targets being lowered. The MACD and RSI do not indicate bullish momentum, and hedge funds and insiders show neutral sentiment. There is also no recent congress trading data or significant news to drive positive sentiment.
In Q3 2025, revenue increased by 2.31% YoY to $131.62M, but net income dropped to -$16.76M (-53.12% YoY), and EPS fell to -$0.16 (-54.29% YoY). While gross margin improved to 75.1% (+5.18% YoY), the overall financial performance indicates declining profitability.
Recent analyst ratings have been negative. Morgan Stanley downgraded the stock to Underweight with a reduced price target of EUR 50 from EUR 63, citing caution in the chemical distribution sector. Berenberg also lowered its price target to EUR 48 from EUR 51 and maintained a Hold rating.