Twist Bioscience
TWST
$124.88
+7.96%
Twist Bioscience Corporation is a synthetic biology company that has developed a disruptive DNA synthesis platform to industrialize the engineering of biology. Its proprietary semiconductor-based manufacturing process synthesizes DNA on silicon, enabling faster, more affordable, and scalable production of high-quality synthetic DNA. The company operates globally across the Americas, EMEA, and APAC, with the majority of revenue derived from the Americas. Currently, the stock is capturing investor attention due to its exceptional growth trajectory, with a 321% one-year price surge, driven by strong demand for its NGS tools and antibody discovery services, as well as improving operational efficiency and a path toward profitability.…
TWST
Twist Bioscience
$124.88
Related headlines
Investment Opinion: Should I buy TWST Today?
Rating: Hold. Twist Bioscience is a high-growth, high-risk stock with a 'Buy' consensus and an average target of $100.89, which is below the current price of $109.08, implying a -7.5% downside. The thesis is that the company's disruptive DNA synthesis platform and strong growth justify a premium, but the stock has already priced in much of the optimism.
Sign up to view all
TWST 12-Month Price Forecast
The AI assessment is neutral, reflecting a balance between strong growth and valuation concerns. The stock's growth is impressive, but its high beta and negative profitability introduce significant risk. The PS ratio, while lower than historical, is still elevated for a loss-making company. The AI would upgrade to bullish if revenue growth accelerates above 25% and margins improve, or downgrade to bearish if growth falls below 10% or the stock breaks below key support levels.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Twist Bioscience's 12-month outlook, with a consensus price target around $105.30 and implied upside of -15.7% versus the current price.
Average Target
$105.30
0 analysts
Implied Upside
-15.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$36 - $120
Analyst target range
Analyst coverage is moderate with 9 analysts currently covering Twist Bioscience, and the consensus recommendation is 'Buy' with a mean recommendation score of 1.55 (where 1 is Strong Buy and 5 is Sell). The average price target is $100.89, which implies a -7.5% downside from the current price of $109.08, indicating that the stock has surpassed analyst expectations. The target range is wide, from a low of $36.00 to a high of $120.00, reflecting high uncertainty about the company's future performance. Recent ratings actions show a mix of affirmations and one downgrade (Evercore ISI from Outperform to In Line), but the overall sentiment remains bullish, with several firms reiterating Buy or Overweight ratings.
Bulls vs Bears: TWST Investment Factors
Twist Bioscience presents a compelling growth story with accelerating revenue, expanding margins, and a reasonable PEG ratio, but the stock's recent 321% surge has pushed it above the average analyst target, limiting near-term upside. The bull case is supported by strong operational execution and a large addressable market, while the bear case centers on valuation risk and persistent losses. Currently, the bull case has slightly stronger evidence given the growth momentum and improving fundamentals, but the key tension is whether the market's optimism is justified by continued execution. If the company can sustain 20%+ revenue growth and achieve profitability sooner than expected, the stock could justify its premium; otherwise, a correction is likely.
Bullish
- Accelerating Revenue Growth: Q2 FY2026 revenue grew 19.3% YoY to $110.7M, up from $103.7M in Q1 and $99.0M in Q4 FY2025, showing sequential acceleration. This growth is driven by balanced strength in NGS tools ($57.4M) and antibody discovery ($53.3M), indicating diversified demand.
- Expanding Gross Margins: Gross margin improved to 51.6% in Q2 FY2026 from 49.6% a year ago, reflecting scale benefits and operational efficiencies. This trend supports the path to profitability and enhances the investment case.
- Reasonable Valuation on PEG: With a PEG ratio of 0.34, the stock appears undervalued relative to its growth prospects. The PS ratio of 4.47x is significantly below its historical average of ~20x, suggesting the market is pricing in more realistic expectations.
- Strong Analyst Support: The consensus recommendation is 'Buy' with a mean score of 1.55 (1=Strong Buy), and the average price target of $100.89 is close to the current price, indicating analysts see limited downside. The high target of $120 implies 10% upside.
Bearish
- Stock Trades Above Analyst Average: At $109.08, the stock is 8.1% above the average analyst target of $100.89, implying a -7.5% downside. This suggests the market has already priced in much of the good news, leaving limited room for upside.
- High Volatility and Beta: With a beta of 2.158, the stock is more than twice as volatile as the market, amplifying both gains and losses. This makes it a risky holding for risk-averse investors, especially after a 321% one-year surge.
- Persistent Losses and Negative Cash Flow: The company reported a net loss of -$44.0M in Q2 FY2026 and negative free cash flow of -$95.1M TTM. Despite revenue growth, profitability remains elusive, and cash burn could pressure the balance sheet if growth stalls.
- Potential Valuation Compression: The PS ratio of 4.47x, while below historical averages, is still high for a company with negative earnings. If growth decelerates, the multiple could compress significantly, leading to a sharp price drop.
TWST Technical Analysis
Twist Bioscience is in a powerful sustained uptrend, with the stock price up 321.2% over the past year, dramatically outperforming the S&P 500's 21.5% gain. The current price of $109.08 sits at 96.2% of its 52-week range (between $23.30 and $113.35), indicating the stock is trading near its highs, reflecting strong momentum and investor optimism, though it also suggests potential overextension. The stock's beta of 2.158 indicates it is significantly more volatile than the market, amplifying both upside and downside moves.
Beta
2.16
2.16x market volatility
Max Drawdown
-38.2%
Largest decline past year
52-Week Range
$23-$126
Price range past year
Annual Return
+387.1%
Cumulative gain past year
| Period | TWST Return | S&P 500 |
|---|---|---|
| 1m | +37.8% | +2.4% |
| 3m | +123.2% | +4.7% |
| 6m | +151.6% | +11.7% |
| 1y | +387.1% | +21.3% |
| ytd | +285.6% | +13.4% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
TWST Fundamental Analysis
Twist Bioscience is experiencing robust revenue growth, with the most recent quarter (Q2 FY2026, ended March 31, 2026) reporting revenue of $110.7 million, a 19.3% year-over-year increase. This growth is accelerating from the prior quarter's $103.7 million (Q1 FY2026) and represents a sequential improvement from $99.0 million in Q4 FY2025. The growth is driven by strong performance in both NGS tools ($57.4 million) and antibody discovery ($53.3 million) segments, which together show balanced expansion. The company's gross margin has improved to 51.6% in the latest quarter, up from 49.6% a year ago, reflecting scale benefits and operational efficiencies.
Quarterly Revenue
$110715000.0B
2026-03
Revenue YoY Growth
+19.3%
YoY Comparison
Gross Margin
51.6%
Latest Quarter
Free Cash Flow
$-95140000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is TWST Overvalued?
Given that Twist Bioscience is not profitable on a trailing basis (net income of -$44.0 million in the latest quarter), the price-to-sales (PS) ratio is the most appropriate valuation metric. The current PS ratio is 4.47x, which is significantly lower than the historical average of around 20x over the past few years, indicating a more reasonable valuation relative to sales growth. The forward PE ratio is -173.1x, reflecting expected losses, but the PEG ratio of 0.34 suggests that the market is pricing in high future growth, making the stock appear undervalued on a growth-adjusted basis.
PE
-21.6x
Latest Quarter
vs. Historical
N/A
5-Year PE Range 17x~59x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-31.4x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant, as Twist Bioscience remains unprofitable with a net loss of -$44.0M in Q2 FY2026 and negative free cash flow of -$95.1M TTM. The company's debt-to-equity ratio is low at 0.29, but its cash burn rate is a concern if revenue growth slows. The current ratio of 3.64 provides liquidity, but continued losses could erode this buffer. Revenue concentration in the Americas (majority of sales) exposes the company to regional economic downturns, and the reliance on a few key products (NGS and antibodies) adds concentration risk.
FAQ
Key risks include: 1) Financial risk from persistent losses and negative free cash flow (-$95.1M TTM), which could lead to dilution if cash runs low. 2) Competitive risk from larger players in the synthetic biology space, which could pressure pricing and margins. 3) Macro risk from high beta (2.158), making the stock sensitive to market downturns. 4) Company-specific risk from revenue concentration in the Americas and reliance on a few key products. The most severe risk is a growth slowdown that triggers a de-rating, potentially leading to a -50% or more decline from current levels.
The 12-month forecast is mixed: the bull case (30% probability) targets $120-$130, the base case (45% probability) targets $90-$110, and the bear case (25% probability) targets $36-$60. The base case is most likely, assuming revenue growth continues at ~19% and margins improve. The average analyst target is $100.89, implying a -7.5% downside from the current price. The stock's high beta means actual outcomes could be more extreme, so investors should be prepared for significant volatility.
TWST's valuation is mixed: the PS ratio of 4.47x is significantly below its historical average of ~20x, suggesting it is undervalued relative to its own history. However, the forward PE of -173.1x reflects expected losses, and the EV-to-sales of 14.2x is high, indicating the market is pricing in substantial future growth. The PEG ratio of 0.34 suggests the stock is undervalued on a growth-adjusted basis, but this depends on the sustainability of high growth. Overall, the market expects strong revenue growth and eventual profitability, which justifies a premium, but the stock is not cheap in absolute terms.
TWST is a good buy for investors with a high risk tolerance and a long-term horizon, given its strong growth and reasonable PEG ratio of 0.34. However, the stock is currently trading above the average analyst target of $100.89, implying a -7.5% downside, so near-term entry may be less attractive. The biggest risk is a valuation correction if growth decelerates, but the company's improving margins and accelerating revenue suggest potential for upside. For conservative investors, waiting for a pullback to the $90-$100 range could offer a better risk/reward.
TWST is more suitable for long-term investment, given its early-stage growth profile and high volatility (beta 2.158). Short-term trading could be profitable but is risky due to sharp price swings. The company is investing heavily in growth, and profitability is not expected until later, so a long-term horizon of at least 3-5 years is recommended to allow the platform to scale and achieve profitability. For investors seeking capital appreciation and willing to tolerate volatility, TWST fits a long-term growth portfolio.