10x Genomics (TXG): Assessing Valuation After a 36% One-Month Share Price Rebound

Recent move and performance context

10x Genomics (TXG) has been quietly grinding higher, with the stock up about 36% over the past month and 30% in the past 3 months, after a choppy multi year stretch.

See our latest analysis for 10x Genomics.

That recent surge sits against a mixed backdrop, with a solid year to date share price return but a still deeply negative three year total shareholder return that shows how long term holders have been tested. This suggests that momentum is rebuilding as sentiment toward its growth prospects improves.

If 10x Genomics has caught your eye, it could be a good moment to explore other innovative healthcare names using our screener for healthcare stocks that might fit a similar growth profile.

With shares now trading slightly above Wall Street’s average target despite only modest revenue growth and ongoing losses, investors face a key question: is 10x Genomics undervalued today, or is future growth already fully priced in?

Most Popular Narrative: 11% Overvalued

With 10x Genomics last closing at $18.15 against a narrative fair value of $16.36, the current share price bakes in a notable premium.

The acquisition of Scale Biosciences broadens 10x Genomics' technical capabilities in single-cell analysis, allowing integration of foundational innovations like combinatorial indexing and quantum barcoding, which may accelerate innovation, reduce costs, and open up new high-value markets, positively impacting future revenue growth and margins.

Read the complete narrative.

Want to see how modest top line expansion, improving margins, and a future earnings multiple combine to justify that premium? The narrative’s valuation math may surprise you.

Result: Fair Value of $16.36 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer academic funding and shrinking pricing power on key platforms could undercut revenue growth assumptions and challenge the premium currently implied.

Find out about the key risks to this 10x Genomics narrative.

Build Your Own 10x Genomics Narrative

If you are not fully aligned with this view or would rather interrogate the numbers yourself, you can craft a custom narrative in minutes: Do it your way

A great starting point for your 10x Genomics research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.