Today, high-profile growth company Ginkgo Bioworks (NYSE:DNA) is one that’s generating a lot of attention in the market. Indeed, given today’s 14% rise in DNA stock, investors who put this stock on their watchlist may be intrigued to know what’s behind the rise.
Many investors are already aware of the bullish stance growth investing guru Cathie Wood has had on DNA stock. Ms. Wood has purchased millions of shares of Ginkgo Bioworks across her exchange-traded funds (ETFs) in recent weeks. Those doubting Cathie Wood’s ability to pick ’em have yet another reason to sit down.
There’s reason for this optimism around DNA stock. Ginkgo Bioworks is a company focused on using synthetic biology to reprogram cells. Doing so may allow cells to become “manufacture” materials with industrial uses.
This sort of sci-fi cross between science and industry is something hypergrowth investors have been intrigued by for some time. Given how fast some of these stocks have moved, those looking for momentum plays have been rewarded of late.
However, today there’s a company-specific catalyst taking shares of DNA stock higher. Let’s dive into what investors are watching with this stock.
DNA Stock Surges on Analyst Report
Yesterday, a Raymond James analyst initiated coverage on Ginkgo Bioworks, providing an outperform rating. This outperform rating came alongside a $14.50 price target for DNA stock.
Indeed, that’s certainly a substantial price target, considering DNA stock traded around $10 per share yesterday. Anytime an analyst implies upside of around 50% in a given stock, investors take notice.
Among the reasons for this impressive price target is Ginkgo’s positioning as a pioneer in the synthetic biology space. Rahul Sarugaser of Raymond James believes the development of these technologies has a very long runway for growth. Accordingly, it appears investors and analysts are growing bullish on Ginkgo’s ability to capitalize on what could be a big opportunity.
This positive analyst report follows bullish coverage from other analysts of late. Indeed, it appears the Street is warming up to Ginkgo’s business model and outlook moving forward. Accordingly, investors bullish on this company’s growth prospects appear to be vindicated in their view today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.