Why 10x Genomics Stock Was Sliding This Week

Gene sequencing technology company 10x Genomics (NASDAQ: TXG) hasn't been having it easy in the past few days on the stock market. A bearish analyst move dampened sentiment on the company, and according to data compiled by S&P Global Market Intelligence its price was down by more than 9% week to date as of early Friday morning.

Morgan Stanley makes a cut

That occurred on Monday, when Tejas Savant from white-shoe investment bank Morgan Stanley reduced his 10x Genomics price target to $18 per share, far down from his previous level of $26. Despite that, Savant maintained his overweight (buy, in other words) recommendation on the shares.

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It wasn't immediately apparent why the analyst made his change, but it isn't the first such move in recent weeks. Several of Savant's peers also lowered their price targets, mostly doing so just after the company published first-quarter results on May 8.

Among these was Canaccord Genuity's Kyle Mikson, who made a more cautious reduction to his 10x Genomics fair value assessment. He now considers it to be worth $15 per share, where he formerly set the price target at $18.

According to report, Mikson's change was due to macroeconomic uncertainty, which throws management's forecasts for the entirety of 2025 into some doubt. Regardless, the analyst maintained his buy recommendation on the stock.

Settlement time

It's worth noting that Savant's adjustment on 10x Genomics came after, and Mikson's came before, the company reached a crucial legal settlement.

It and scientific instruments maker Bruker effectively ended a messy dispute brought by 10x Genomics that alleged Bruker's GeoMx Digital Spatial Profiler infringed on a series of its patents. The details of the settlement haven't been forthcoming.

I'd be willing to give 10x Genomics a break on that fuzzy outlook, and I find news about the settlement to be positive. The company operates in an exciting and cutting-edge field, and largely on that basis alone I'd be bullish on its prospects (while noting that this is a highly speculative investment).

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends 10x Genomics and Bruker. The Motley Fool has a disclosure policy.