Twist Bioscience (TWST, Financial) has initiated the separation of its DNA data storage technology into a new entity, named Atlas Data Storage. Through contribution and license agreements, Twist has transferred and licensed its DNA data storage technology to Atlas. In return, Twist receives a minority stake in the new venture, along with an upfront cash payment and a secured promissory note. This strategic move allows Twist to maintain a stake in Atlas and potentially benefit through future technological advancements and financial milestones, including royalties from Atlas' future product sales.
Furthermore, technology developments by Atlas that apply to Twist’s existing product groups could be advantageous for Twist. Twist’s CEO and co-founder, Emily Leproust, will join Atlas's board of directors. The two companies will function independently, each with its own management team. George Kadifa from Sumeru Equity Partners will act as executive chairman of Atlas, while Varun Mehta steps in as CEO. Additionally, Bill Banyai, Twist co-founder and former general manager of DNA data storage, will become Chief Technology Officer at Atlas. This spin-out was approved by an independent special committee from Twist’s board, with Jefferies providing financial advisory services.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Twist Bioscience Corp (TWST, Financial) is $53.74 with a high estimate of $65.00 and a low estimate of $45.00. The average target implies an upside of 36.96% from the current price of $39.24. More detailed estimate data can be found on the Twist Bioscience Corp (TWST) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Twist Bioscience Corp's (TWST, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Twist Bioscience Corp (TWST, Financial) in one year is $59.61, suggesting a upside of 51.91% from the current price of $39.24. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Twist Bioscience Corp (TWST) Summary page.
