Stock Price & Analysis

Answer:

Based on the analysis, it is recommended to hold Ginkgo Bioworks (DNA) stock as the mixed outlook and recent performance suggest caution. While there is growth potential, the stock's volatility and revenue concerns warrant monitoring before reconsidering a buy or sell decision.

Price Prediction for DNA Stock in 2025

Based on current trends and analysis, DNA stock is expected to trade between $6.10 and $8.40 in 2025.

The stock is currently priced at $7.27 as of March 21, 2025, with a Fibonacci pivot point at $7.15, suggesting potential support at this level.

The DNA synthesis market's growth, driven by increasing use of DNA synthesis-based therapeutics and technological innovations, supports a bullish outlook, with the market projected to grow at an 18.1% CAGR. However, technical indicators like the RSI (43.92) and MACD (-1.06) suggest cautious momentum.

Analysts maintain a mixed outlook, with some holding a Buy rating due to growth potential in tools and AI offerings, while others express concerns over revenue projections.

The S1 support level for DNA Stock is $5.65 ,The R1 resistant level for DNA Stock is $7.5.

As of the end of day on 2025-04-02, the price of DNA Stock was $5.69.

The target price for DNA Stock according to analyst rating is 9.17, with the highest price target at 12.00 and the lowest at 6.00. Analysts have a Moderate Sell rating on DNA Stock overall.

The market cap of DNA is $324.7M.

DNA is currently overvalued based on several factors:

1. High Valuation Metrics: Ginkgo Bioworks (DNA) has a market cap of $396 million, with a stock price of $7.26 as of the latest data. The company's valuation metrics, such as P/E and EV/EBITDA, are not available or appear zero, indicating potential overvaluation relative to its financial performance.

2. Lack of Profitability: The company has not yet shown consistent profitability, with revenue growth not keeping pace with market expectations. This raises concerns about its ability to justify its current valuation.

3. Recent Stock Performance: DNA's stock has been under significant pressure, dropping 12.5% recently and 37.27% over the past month, reflecting investor concerns about its financial outlook and strategic direction.

4. Analyst Sentiment: While some analysts maintain a Buy rating, others have lowered price targets and expressed caution due to financial and strategic challenges, signaling uncertainty about the stock's future performance.

5. High-Risk Sector: As a biotech company, Ginkgo operates in a high-risk, high-reward sector, with significant investments in cell programming and biosecurity. However, the lack of clear profitability and revenue growth makes the stock's valuation appear stretched.

In conclusion, DNA's high valuation, lack of profitability, and recent stock underperformance suggest it is overvalued at current levels. Investors should exercise caution and consider the company's ability to meet growth expectations before investing.

Ginkgo Bioworks Holdings, Inc. operates as a horizontal platform for cell programming, providing end-to-end services for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Its segments include Cell Engineering and Biosecurity. The Cell Engineering consists of research and development services performed under collaboration and license agreements relating to its cell programming platform. Its cell programming platform includes two core assets: the Foundry, and Codebase. The Biosecurity segment consists of biomonitoring and bioinformatic testing products and services primarily provided to public health authorities. It also focuses on the design of next-generation cell therapies for autoimmune diseases. It uses its platform to develop and screen libraries of novel NK-specific and T-cell specific chimeric antigen receptor and switch receptor designs, which enable control and performance of immune cell-based therapies.

Price Prediction for DNA Stock by 2030

Based on current market trends and the company's growth potential, Ginkgo Bioworks (DNA) stock is projected to reach $20 per share by 2030. This prediction is supported by the growing demand in the DNA synthesis market, which is expected to accelerate at an 18.1% CAGR, reaching $6.52 billion by 2028. Ginkgo's strategic position in this market and its focus on innovative technologies could drive long-term growth.

However, the stock's current volatility and mixed earnings reports suggest cautious optimism. While some analysts maintain a "Buy" rating due to growth potential in tools and AI, others have lowered price targets amid financial and strategic concerns. The stock's recent performance, closing at $7.27 with a 1.39% increase, reflects ongoing market uncertainty.

Risks include execution challenges and broader market volatility, which could impact the stock's trajectory. Investors should monitor the company's ability to capitalize on the expanding DNA synthesis market and improve its financial outlook.

DNA has a total of 1218 employees.