Ginkgo Bioworks (NYSE: DNA) stock surged in pre-market trading Friday despite BTIG cutting the stock target.
BTIG has reduced the price target for Ginkgo Bioworks (NYSE: DNA) to $0.20, a stark drop from its previous target of $0.50. The firm maintained a Sell rating on the stock, reflecting growing concerns over the company’s financial health and growth prospects.
The analyst at BTIG cited an 81% year-to-date decline in share price as a contributing factor, attributing the sell-off to challenges in forecasting revenue growth from new cell program additions in the coming years.
Given the financial challenges, Ginkgo Bioworks recently announced plans to reduce its workforce by at least 35%, affecting approximately 400-500 full-time employees across general and administrative (G&A) and research and development (R&D) functions. The company expects to substantially complete these cuts by 2025, raising concerns about employee morale amid job security uncertainties.
Notably, Anna Marie Wagner, a prominent leader at Ginkgo Bioworks, is among those affected by the job cuts. Wagner has held multiple senior roles, including SVP, Head of AI, SVP, Head of Corporate Development, and Interim CFO. The BTIG analyst has highlighted her departure as a significant loss for the company.
Moreover, Ginkgo Bioworks has outlined various steps to streamline operations and cut costs. The company plans to reduce its physical footprint by up to 60%, consolidating its core Foundry operations into the new Biofab1 facility. This strategic move aims to create a more efficient and cost-effective operational structure amid the current challenges.
Ginkgo Bioworks (NYSE: DNA) Stock Movement
As of 07:45 a.m. (Eastern Time) Friday, DNA stock traded at $0.3275, marking a 5.92% increase compared to the previous trading session.
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