Pacific Biosciences: Longer Reads, But Shorter Patience (Downgrade)
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Stephen Simpson20.56K FollowersFollow5ShareSavePlay(9min)CommentsSummaryPacific Biosciences faces ongoing challenges with slow commercial adoption and academic funding pressures, despite some recent share price outperformance versus peers.PACB's path to profitability is uncertain, with my cash flow breakeven estimate now pushed out to 2030 and cash burn remaining a concern.System placements and consumables pull-through remain underwhelming, making it difficult to sustain a bullish stance until $100 million/year in consumables is achieved.While long-term upside exists if adoption accelerates, it's difficult to sustain a positive rating without more evidence of momentum in adoption and utilization. Martin Philip/iStock via Getty Images Although the shares of long-read sequencing specialist Pacific Biosciences of California, Inc. (PACB) (“PacBio”) have done better of late, rising more than 25% since my last "Buy" update in February and outperforming both Illumina (ILMN) andThis article was written byStephen Simpson20.56K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.