Stifel has downgraded Oxford Nanopore Technologies PLC (LSE:ONT) to a 'sell' rating, warning that mounting headwinds are putting the company’s growth targets at risk.
The move, including a cut its price target to 100p, sent shares in the DNA sequencing group down 8% at 102.9p on Monday. The stock is now down 20% since the start of the year.
Analysts said a weakening funding environment, growing competition and a gloomier near-term outlook all threaten the gene sequencing company's ability to hit its mid-term guidance.
While the shares trade at a discount to peers and around 3.5 times forecast 2025 sales, Stifel argued that valuation alone isn’t enough to support the investment case.
The downgrade follows a miss on consensus expectations for results earlier this month and comes as investors increasingly question how the company will maintain momentum in a tougher market.