Analyst Steven Mah of TD Cowen maintained a Buy rating on 23andMe Holding (ME – Research Report), with a price target of $2.00.
Steven Mah has rated 23andMe Holding with a Buy due to a combination of factors, including the potential strategic restructuring of the company. The proposed consideration to split the consumer and therapeutics business is seen as a positive move that could enhance shareholder value. This structural change is expected to highlight the robust margins of the consumer business, which is currently overshadowed by the cash-intensive therapeutics division. The possibility of an external funding for the therapeutics spinout could provide an additional financial buffer and mitigate the current drag on the consumer segment’s profitability.
Moreover, Mah acknowledges the management’s proactive approach to restoring the stock’s value above the $1 threshold required to maintain NASDAQ listing. The search for new pharmaceutical partnerships and the potential positive shift in sector sentiment are key drivers that could lead to a rapid appreciation of the stock. Although there has been a noted lack of progress in securing new partners since the exclusivity with GSK expired, the overall strategic direction and positive clinical outcomes of 23andMe’s assets support the Buy rating.
According to TipRanks, Mah is an analyst with an average return of -9.7% and a 30.53% success rate. Mah covers the Healthcare sector, focusing on stocks such as Twist Bioscience, BioLife Solutions, and Ginkgo Bioworks Holdings.
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23andMe Holding (ME) Company Description:
VG Acquisition Corp is a blank check company.
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