Twist Bioscience
TWST
$145.59
+6.79%
Twist Bioscience Corporation is a synthetic biology company that has developed a proprietary semiconductor-based DNA synthesis platform, enabling the production of high-quality synthetic DNA faster, more affordably, and at scale. The company operates in the healthcare sector, specifically within medical diagnostics and research, and serves customers across the Americas, EMEA, and APAC. As a market leader in DNA synthesis, Twist Bioscience is distinct for its silicon-based manufacturing process that overcomes traditional inefficiencies. The current investor narrative centers on the company's explosive growth trajectory, driven by strong demand for its NGS tools and antibody discovery services, as well as its recent financial performance that has sparked significant market enthusiasm and a sharp rally in its stock price.…
TWST
Twist Bioscience
$145.59
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Investment Opinion: Should I buy TWST Today?
Rating: Hold. The consensus recommendation is 'Buy' with an average target of $105.30, but the current price of $145.59 is 38% above that target, suggesting the stock is overvalued. The thesis is that while Twist has strong growth prospects, the current price already reflects much of the optimism, leaving limited upside and significant downside risk.
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TWST 12-Month Price Forecast
The AI assessment is neutral, reflecting the balance between strong growth and extreme valuation. The stock's momentum is impressive, but the current price has outpaced fundamentals and analyst expectations. The key factor to watch is whether revenue growth can accelerate or maintain its pace, and whether the company can move toward profitability. If growth remains above 20% and margins expand, the stock could justify its valuation; otherwise, a correction is likely. I would upgrade to bullish if the stock pulls back to $105 or below, or if the company reports positive free cash flow. I would downgrade to bearish if revenue growth falls below 10% or if the stock breaks below $90.
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 -27.7% versus the current price.
Average Target
$105.30
0 analysts
Implied Upside
-27.7%
vs. current price
Analyst Count
—
covering this stock
Price Range
$36 - $120
Analyst target range
Twist Bioscience is covered by 10 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 1.55 (where 1 is Strong Buy and 5 is Sell). The average target price is $105.30, which is below the current price of $145.59, implying a downside of -27.7%. The target range is wide, from a low of $36.00 to a high of $120.00, indicating high uncertainty among analysts. The high target of $120.00 is still below the current price, suggesting that the recent rally has outpaced analyst expectations. Recent ratings actions show a mix of upgrades and downgrades, with Evercore ISI downgrading from Outperform to In Line, while Leerink Partners upgraded from Market Perform to Outperform, reflecting divergent views on the stock's valuation and growth prospects.
Bulls vs Bears: TWST Investment Factors
Twist Bioscience presents a classic high-growth, high-risk investment. The bull case is anchored by accelerating revenue growth, improving margins, and a dominant position in a promising market. However, the bear case is equally compelling: the stock trades at a massive premium to analyst targets, the company is unprofitable, and volatility is extreme. Currently, the bearish evidence is stronger due to valuation concerns, but the growth trajectory is undeniable. The central tension is whether the market's optimism about future growth justifies the current price, or if a correction is imminent. If revenue growth continues to accelerate and margins expand, the stock could justify its valuation; otherwise, a significant de-rating is likely.
Bullish
- Explosive Revenue Growth: Revenue surged 19.3% YoY to $110.7M in Q2 2026, with sequential acceleration from $96.1M to $110.7M over three quarters. This momentum is driven by strong demand in NGS tools and antibody discovery, positioning the company for continued expansion.
- Improving Gross Margins: Gross margin improved to 51.6% in Q2 2026, up from 49.6% in Q2 2025 and 45.1% in Q4 2024. This trend indicates operational leverage and pricing power, supporting the path to profitability.
- Massive Market Opportunity: As a leader in synthetic biology with a proprietary silicon-based platform, Twist is well-positioned in a rapidly growing market. The company's technology enables cost-effective, high-throughput DNA synthesis, appealing to a broad customer base across research and diagnostics.
- Strong Balance Sheet: Current ratio of 3.64 and debt-to-equity of 0.29 indicate a solid liquidity position with low leverage. This financial stability provides a buffer for ongoing R&D and expansion initiatives.
Bearish
- Valuation Far Exceeds Analyst Targets: Current price of $145.59 is 38% above the average analyst target of $105.30 and even above the high target of $120.00. This implies the market has priced in expectations beyond what analysts consider reasonable, posing significant downside risk.
- Persistent Unprofitability: Net margin is -20.6% with negative EPS of -0.71 in Q2 2026. The company continues to burn cash, with free cash flow of -$95.1M TTM, raising concerns about long-term sustainability without continued capital raises.
- Extreme Volatility and Overextension: Beta of 2.16 and a 450% rally in one year have pushed the stock to 99.8% of its 52-week high. The stock is highly sensitive to market sentiment, and any disappointment could trigger sharp corrections, as seen in the -33.86% max drawdown.
- High Short Interest: Short ratio of 10.05 indicates significant bearish positioning. This could lead to short squeezes, but also reflects skepticism about the sustainability of the rally and potential for sharp declines if sentiment shifts.
TWST Technical Analysis
Twist Bioscience is in a powerful sustained uptrend, with the stock price soaring 450.0% over the past year. Currently trading at $145.59, the stock is near its 52-week high of $145.93, representing 99.8% of the 52-week range. This positioning near the highs indicates strong momentum and investor confidence, though it also raises concerns about potential overextension. The stock's 52-week low of $23.30 highlights the dramatic appreciation, and the current price is well above the midpoint, reflecting a robust bullish trend.
Beta
2.16
2.16x market volatility
Max Drawdown
-33.9%
Largest decline past year
52-Week Range
$23-$146
Price range past year
Annual Return
+450.0%
Cumulative gain past year
| Period | TWST Return | S&P 500 |
|---|---|---|
| 1m | +54.5% | +3.6% |
| 3m | +140.4% | +2.7% |
| 6m | +199.6% | +11.4% |
| 1y | +450.0% | +18.7% |
| ytd | +349.5% | +12.3% |
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TWST Fundamental Analysis
Twist Bioscience's revenue is growing rapidly, with the most recent quarter (Q2 2026) reporting revenue of $110.7 million, a 19.3% increase year-over-year. This growth is accelerating, as revenue has increased sequentially from $96.1 million in Q3 2025 to $103.7 million in Q1 2026 and then to $110.7 million in Q2 2026. The growth is driven by both NGS tools ($57.4 million) and antibody discovery ($53.3 million) segments, which are expanding as the company gains market share in synthetic biology applications.
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
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Valuation Analysis: Is TWST Overvalued?
Given that Twist Bioscience has negative net income (net margin of -20.6%), the price-to-sales (PS) ratio is the most appropriate valuation metric. The trailing PS ratio is 4.47x, while the forward PS ratio is not directly provided but can be estimated from analyst revenue estimates, implying a forward PS of approximately 1.9x based on estimated revenue of $888.7 million. The gap between trailing and forward PS suggests the market expects significant revenue growth, which is consistent with the company's recent trajectory.
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 substantial. Twist Bioscience has negative net income and free cash flow, with a net margin of -20.6% and FCF of -$95.1M TTM. The company relies on external funding to sustain operations, as evidenced by a debt-to-equity ratio of 0.29, which is manageable but could increase if losses persist. Revenue concentration in NGS and antibody discovery segments exposes the company to sector-specific downturns, and the high burn rate raises questions about long-term solvency without continued capital raises or a path to profitability.