Benzinga | Jan 28, 2022 11:20AM EST

Why BofA Sees 'Better Entry Point' In Ginkgo Bioworks Stock

Ginkgo Bioworks Holdings Inc (NYSE:DNA) is "at the forefront of the rising SynBio wave, a market we think holds much long-term promise," according to BofA Securities.

The Ginkgo Bioworks Analyst: Derik de Bruin initiated coverage of Ginkgo Bioworks with a Buy rating and $8 price target.

The Ginkgo Bioworks Thesis: Ginkgo Bioworks's engineering biology platform is strong, with "some early successes," and the company is rapidly adding new programs, de Bruin said in the initiation note.

The platform is still in the initial stages of adoption, and it is too early to judge "the commercial traction for the end-products derived from this technology," the analyst said.

Given the sharp selloff in early stage growth stocks, with Ginkgo Bioworks's stock shedding 69% versus the 8% decline in the S&P 500, "we think the current share price represents a better entry point for risk tolerant clients looking to invest in the nascent SynBio market," he wrote.

DNA Price Action: Shares of Ginkgo Bioworks were trading 4.3% higher at $4.85 Friday morning.