Panmure Liberum sees the risk to Oxford Nanopore's (LSE:ONT) estimates skewed to the downside heading into interim results on 19 August, even though the company maintained guidance at July's trading update.
The DNA/RNA sequencing group's shares have already recovered most of the 20% they lost immediately after that disappointing update, as investors anticipate clarity on strategy from the results, the first under new chief executive Francis Van Parys.
Panmure Liberum, whose analyst Dr Julie Simmonds authored the note, reiterated its Hold rating on Oxford Nanopore and kept its price target at 170p.
The broker expects the interim statement to set out the new chief executive's long-term strategic direction, a shift it believes could temporarily delay the company's path to profitability.
It also flagged that valuation multiples remain elevated even after applying an estimated 20% discount to direct sequencing peers.
Oxford Nanopore, listed in London, develops nanopore-based DNA and RNA sequencing platforms for research, clinical and industrial customers.
The 19 August results will mark the first test of Van Parys's strategic priorities since he took over commercial responsibility from finance chief Nick Keher at the start of July.
