Twist Bioscience Stock Sinks as Bear Cave Raises Valuation Concerns

Twist Bioscience Corp (NASDAQ:TWST) shares are plunging Thursday. The Bear Cave, which Hunterbrook Media owns, said that the life science tools company’s stock price may have run ahead of its fundamentals. Here’s what you should know.

• Twist Bioscience shares are retreating from recent levels. Why is TWST stock falling?

Twist Bioscience Stock Falls After Bear Cave Report

The Bear Cave argued in a report Thursday that Twist looks like an ordinary lab supplier, but trades at a premium price compared with its rivals. The report suggests that the recent rally in shares may have gone too far.

Twist Bioscience did not immediately respond to Benzinga’s request for comment.

The Bear Cave said Hunterbrook Media’s investment affiliate, Hunterbrook Capital, held no positions related to the report at publication, though that could change.

The report states that no peer trades at a higher multiple than TWST, even though customers have alternatives. According to the report, Twist sells DNA for genes and proteins for drug candidates to biomedical customers. Several rivals offer similar services at similar prices, the report says, and Twist faces competition across nearly everything it sells.

The report concedes the bull argument. Supporters point to rising demand, the company’s size, operating leverage and expansion into new markets as reasons Twist deserves a loftier ranking among lab suppliers, and the report calls that a strong pitch.

It adds that next week’s earnings may look good and that the CEO sounded upbeat in conversation with the author. Even so, the report argues, results alone may not support today’s share price.

Report Cites Anthropic Link and Past 95% Drop

The report points to history. TWST lost 95% of its value after peaking near $200 in 2021, and the report questions whether that could happen again. It alleges the climb back was helped by hype and a short squeeze, which began in August when an Anthropic technical paper led many investors to assume the two companies were partners.

The report also notes that Twist settled litigation with Agilent, CEO Emily Leproust’s former employer, over allegations that she took the technology Twist was founded on. Twist paid $22.5 million without admitting wrongdoing.

TWST Shares Are Sinking

TWST Price Action: Twist Bioscience shares were down 10.82% at $127.16 at the time of publication on Thursday, according to Benzinga Pro.

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