TWST Should I Buy
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Twist Bioscience Corp (TWST) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the stock shows some positive technical indicators and moderate analyst optimism, the lack of recent positive news, declining net income, and hedge fund selling trends suggest caution. Holding the stock or waiting for a better entry point is advisable.
The technical indicators show a bullish trend with MACD positively expanding, RSI in the neutral zone, and moving averages aligned bullishly (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level (R1: 57.952), which may limit immediate upside potential.
Analyst ratings have been consistently raised, with price targets now ranging between $55 and $56, reflecting optimism about the company's growth potential in AI-driven drug discovery and NGS normalization. Gross margin has also improved YoY, indicating operational efficiency.
Hedge funds are aggressively selling the stock, with a 634.68% increase in selling activity last quarter. Net income and EPS have declined YoY, and there is no recent news or event-driven catalyst to drive the stock higher. Additionally, the stock has a 70% chance to decline slightly (-0.56%) in the next day.
In Q1 2026, revenue increased by 16.89% YoY to $103.7M, and gross margin improved to 52.05% (+7.79% YoY). However, net income dropped by -3.44% YoY to -$30.5M, and EPS declined by -5.66% YoY to -$0.50, reflecting ongoing profitability challenges.
Analysts are optimistic, with multiple firms raising price targets recently. Barclays, Evercore ISI, and Guggenheim have all increased targets to $55-$56, maintaining Overweight, Outperform, and Buy ratings. However, Barclays notes that the sector is 'not without risk,' and sentiment remains at all-time lows.
