BNGO Stock Forecast 2021 – BNGO Stock Price Prediction 2021, 2022, 2025 & 2030

Connor Brooke

Last Updated: 30, May 2022

Fact Checked by Gary McFarlane

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Small-cap stocks can offer investors a way to generate much larger returns than those provided by mature companies – albeit with a much higher risk level. This year, one of the most hyped small-cap stocks is Bionano Genomics (BNGO), which looks set to explode in the months ahead.

In this article, we’ll explore our BNGO Stock Forecast in detail. We’ll discuss what BNGO is and the stock’s future outlook before highlighting where you can buy BNGO today – without paying any commissions!

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Key Drivers – BNGO Stock Price Forecast 2021 and 2022

The best shares to buy now often are those in the growth phase of their lifecycle yet have strong fundamentals to back up any potential investment. Bionano Genomics (BNGO) certainly fit this bill and aim to expand their business over the coming year. Let’s discuss what Bionano Genomics do and the outlook for the BNGO stock price.

Bionano Genomics Inc is a pharmaceuticals company based in San Diego that produces tools that help in genome analysis. Analysing the genome is a crucial element in detecting diseases and improving the efficacy of treatment, which is why BNGO’s services are so highly regarded in the healthcare industry. BNGO is a publicly traded company listed on the NASDAQ, with Erik Holmlin the current CEO.

Bionano Genomics is best known for its Saphyr System, a tool that allows medical researchers to identify changes in chromosomes much faster and more seamlessly than the current methodology. At present, Saphyr does not have FDA approval, meaning that it cannot be used in specific settings. However, Saphyr can still be used to conduct research, with the hope that FDA approval isn’t too far away.

Due to the constraints with selling it, BNGO has not managed to market the Saphyr System effectively as of yet. However, BNGO has been quietly acquiring other firms to bolster its service offering, with Lineagen being one of the most exciting. This firm specialises in testing for Autism and other similar conditions, meaning that Bionano Genomics now has another exciting service to offer clients.

So, now that you have a brief understanding of what Bionano Genomics does, let’s look at the drivers of the stock price:

• Sales of Saphyr: According to GlobeNewswire, BNGO only shipped 13 Saphyr systems in Q2 2021. This means that a total of 121 Saphyr systems are in operation right now, which really isn’t much in the grand scheme of things. BNGO will need to ramp this number up if the stock price is going to improve.
• Revenue Growth: Revenue increased by 21.7% between Q1 and Q2 2021, which is a substantial increase that highlights the company is heading in the right direction. This is even more impressive given that only a few sales of the Saphyr system were made.
• Burning Cash: BNGO is burning through cash quite quickly, although this isn’t necessarily a bad thing. BNGO raised a lot of capital through their recent equity offering, which allows them the freedom to market Saphyr properly and solidify their business model.

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BNGO Stock Price History – What’s Going On in 2021

When you invest in stocks, it’s crucial to understand what the price chart is telling you. Looking at the BNGO technical analysis below, we can see that the current price is hovering around the $5.16 level. This represents a decrease of around 67% from the all-time highs experienced in February 2021.

The share price has been on a slippery slope since that high and has not yet shown any signs of recovery. However, there seems to be a solid support level around $4.50, where the price rebounded aggressively in May 2021. As the price is nearing this level, it may be a good idea to add BNGO to your watchlist over the next few weeks.

The Bionano Genomics stock price is still trading below the 50-day and 200-day EMAs, which are moving average indicators that highlight the prevailing trend. As the price is below these EMAs, it means that the overall market sentiment over the medium to long term is bearish at present. To summarise, if this were to change, we’d need to see some bullish momentum soon – perhaps after a rejection from the $4.50 support level.

BNGO Stock Price Forecast – Short Term Outlook

The best companies to invest in over the short term tend to have good technical and fundamental elements. In Bionano Genomics’ case, the technicals aren’t ideal at present, as you can see from the previous section. Price is still trickling down with very low momentum, which signifies that some impetus is needed to turn things around.

If we see a rejection from the $4.50 level, it may allow us to buy BNGO for some short-term gains. The returns from this level back to June’s highs would equal 109% – much higher than you’d get from most stocks! However, as we’ve noted earlier, small-cap stocks tend to be a lot more volatile, so it’s wise to invest only if you’re happy with the risk.

Looking at Bionano Genomics’ financials, we can see that revenue is increasing each quarter. Data from YCharts shows that revenue and gross profit increased from Q1 2021 to Q2 2021, which is a solid sign. However, the net loss made by the company widened substantially, which is a concern. Although this loss can be attributed to much larger R&D expenses, it is still worrying that the sales growth is not reducing the deficit.

Due to these losses, BNGO is currently has a negative EPS figure of -0.39. This figure doesn’t tell us much as it tends only to be valuable when comparing two companies within the same industry, although it does mean that BNGO lacks a P/E ratio right now. The company’s price-to-sales ratio is around 84.54, which is extremely high and shows that the share price is trading at a premium, as measured by sales figures.

Overall, with a market cap of over $1.4bn at present, it’s hard to justify an investment in BNGO unless it is based on technicals. For the stock to grow long term, we’d need to see better sales figures and more revenue derived from their innovative Saphyr system. If Q3 figures show some movement in these areas, it may be an excellent time to consider an investment.

67% of all retail investor accounts lose money when trading CFDs with this provider.

BNGO Stock Price Forecast – Long-Term Outlook

Now let’s turn our attention to the long term. Small-cap stocks are an appealing prospect for investors with a long-term investment horizon, as they offer the chance at generating incredible returns. However, there are so many to choose from, so it’s essential to do your due diligence and come to a rational valuation of the company’s stock.

In the case of BNGO, the company certainly looks more attractive in the long run than in the short run. Investing.com recently reported that analysts from Oppenheimer & Co, one of the leading equity researchers in the industry, maintained a buy rating on BNGO with a price target of $14. If the price were to reach this level, that would represent a remarkable 171% increase!

To people who invest in stocks, these returns are few and far between in the stock market, so the fact that major analysts are speculating in this manner can only be a good thing. However, for BNGO to reach this level, we’d need to see a significant uptake in their Saphyr system. Right now, judging by sales figures, it would take years for BNGO to generate enough momentum to push to those heights.

One thing that could benefit Bionano Genomics is if the FDA approved the Saphyr system for use in commercial settings. Right now, BNGO’s target audience is limited to research institutions, as they aren’t legally allowed to sell to insurers or other healthcare companies. If the company can prove the system’s safety and efficacy, we may see some changes in this area over the next year or two, allowing BNGO to reach its full potential.

The equity offering back in January 2021 raised a whopping $230 million for the company, meaning that BNGO has a large capital cushion to fall back on. Thus, even at the rate that BNGO is burning cash, the company will still be able to operate at total capacity for at least another few years. This cash flow ‘safety net’ will allow Bionano Genomics to improve the marketing for their services and generate much-needed sales growth.

Overall, we’re pretty bullish on BNGO over the long term. The diagnostics tools offered by the company are potentially revolutionary and could shape the way that certain diseases are treated in the long run. Furthermore, companies such as Tesla also traded sideways for a long time before exploding, which BNGO investors will be hoping for. Time will tell if this happens, but BNGO is certainly worth keeping an eye on over the longer term.

How to Buy BNGO Stock?

The final element of this BNGO stock forecast focuses on the investment process. If you wish to buy stocks, you’ll need to create an account with a licensed and regulated broker to facilitate your trade. These brokers automatically pair buyers and sellers together, offering a seamless investing experience for all parties.

In our experience, we believe that eToro offers the best platform for buying BNGO shares. This is because eToro doesn’t charge any commissions when you place a trade and allows fractional investing from only $50. So, with that in mind, the four steps below show you how to buy BNGO shares with eToro in minutes!

Step 1 – Open an eToro Account

Navigate to eToro’s website and click ‘Join Now’. You’ll then be asked to enter a valid email address and choose a username and a password to create your account.

67% of all retail investor accounts lose money when trading CFDs with this provider.

Step 2 – Verify your Account

As one of the safest CFD brokers in the industry, eToro requires new users to verify themselves before trading. To do so, head to your dashboard and enter the necessary personal information for the KYC checks. You’ll also have to upload proof of ID (a copy of your passport or driver’s license) and proof of address (a copy of a bank statement or utility bill) for eToro to verify.

Step 3 – Fund your Account

Once verified, you can now make a deposit. eToro doesn’t charge any deposit fees if you fund your account via USD and accepts the following methods:

• Credit card
• Debit card
• Bank transfer
• PayPal
• Skrill
• Neteller
• Klarna
• Trustly

Step 4 – Buy BNGO Shares

When you are ready, type ‘BNGO’ (Bionano Genomics’ ticker symbol) into the search bar and click ‘Trade’ next to the first option. An order box will now appear, similar to the one below. Simply enter your desired position size, opt for a stop loss or take profit level if you wish, and click ‘Open Trade’.

Congratulations! You’ve just invested in BNGO with eToro – completely commission-free!

BNGO Stock Price Forecast – Final Word

To summarise, this BNGO stock forecast has explored what Bionano Genomics does and the outlook for the company’s stock. We’ve also highlighted where you can buy BNGO today – with no commissions.

Overall, BNGO looks to be an excellent investment over the long term – even though the short-term prospects don’t look so rosy. The company offers an exceptional product and has a stellar team behind it, meaning that long-term growth is highly likely. If BNGO can continue making headway in its quest for FDA approval, then we’ll undoubtedly see some bullish movements in the months and years ahead.

So, if you’d like to buy BNGO today, we’d recommend using eToro. eToro will allow you to invest in BNGO commission-free and from as little as $50. Moreover, eToro is highly regulated by numerous organisations, ensuring you can trade safely and securely.

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What is BNGO?

Bionano Genomics (BNGO) is a pharmaceuticals company that offers genome mapping tools for use in a research setting. The company’s Saphyr system aims to streamline the process, meaning diseases can be treated sooner and more efficiently.

Is BNGO a good investment opportunity?

As a small-cap stock, BNGO is a good investment opportunity if you are investing long term. However, BNGO may not be ideal short term, as its sales growth is still not where it needs to be.

Where can I buy BNGO stock?

Our recommended broker for buying BNGO stock is eToro. This is because eToro will allow you to invest commission-free and from as little as $50 per trade.

Will the price of BNGO go up in the future?

If BNGO can showcase some solid Q3 results, we’ll likely see a pop in the share price. However, long-term growth will probably be contingent on BNGO being allowed to sell their Saphyr system to a broader client base.

Is buying BNGO risky?

Much like all small-cap stocks, buying BNGO does come with an element of risk as the company is still in the growth stage. As such, revenues and net income figures are hard to predict, which translates to volatility in the share price.

About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.

View all posts by Connor Brooke