Oxford Nanopore Technologies (LSE:ONT) is running "a marathon not a sprint", according to Panmure Liberum, which says a strategy reset unveiled alongside interim results has the potential to widen adoption of the gene-sequencing group's technology.
The interim results included a top-level strategy review, long-term guidance and a global cross-licensing agreement, all of which the broker says tackle many of its previous worries.
Panmure Liberum upgraded Oxford Nanopore to Buy from Hold, and raised its price target to 196p from 170p.
Analyst Dr Julie Simmonds cautions that the transformation will take time, with some risk to both long-term and short-term guidance as it unfolds. The targeted growth relies heavily on a significant lift from the company's Biopharma segment, the note says.
The broker's view is that Oxford Nanopore still trades at a discount to peers, and that "investors should be picking up on weakness" as the changes take effect.
