BTIG cuts Ginkgo Bioworks stock price target on transition concerns

BTIG has reduced its target price for Ginkgo Bioworks stock, citing transition concerns. The stock, currently trading at $6.94, is now expected to reach $5.00, down from a previous target of $9.00. Despite the stock trading above the new target, Analysts believe Ginkgo remains undervalued. The company is transitioning to an AI robotic lab model, focusing on building out Autonomous Labs, which it plans to launch in 2026.

Ginkgo has divested its Biosecurity segment and is decommissioning most of its lab benches to create a larger single autonomous lab. The firm is also increasing its RAC cart automation, expanding from 50 to 100 systems in the Boston facility by year-end 2026. Revenue at Ginkgo has declined by 37% over the past year, and the company is burning through cash quickly, with no expected profitability this year.

The company's guidance has been suspended. Ginkgo's strategy is to become the AI robotic lab of the future, similar to Waymo's model. BTIG is waiting for more visibility into the company's progress towards building and monetizing Autonomous Labs. Ginkgo Bioworks reported a revenue of $20 million in Q4 2026, significantly below the forecast of $29.9 million, resulting in a 48% decline and pressure on the company's financial outlook.

Despite posting an adjusted loss of $0.92 per share, which was better than expected, the revenue miss has raised concerns about the company's financial future.