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Highlights

  • Oxford Nanopore receives consistent BUY ratings from analysts, with price targets indicating up to 14.4% upside.

  • H1 FY25 revenue surges 28% (CC), driven by strong PromethION performance and Applied markets demand.

  • Adjusted EBITDA loss narrows amid improved cash flow and disciplined cost management.

Oxford Nanopore Technologies plc (LSE:ONT), a leader in next-generation molecular sensing using nanopore-based technology, has received a bullish endorsement from analysts, likely on the bais of the trading update for the first half of FY25. The company is currently rated as a BUY by multiple analysts, with price targets suggesting notable upside from current levels.

Kyle A. Mikson from Canaccord Genuity reiterated a BUY rating on 8 July 2025, setting a target price of AUD 3.72, representing a 2.97% increase from the current price of AUD 3.61. Meanwhile, Investec Bank UK’s Andrew M. Whitney maintained a BUY rating with a higher price target of AUD 4.14, implying a 14.42% upside. 

Revenue Performance Beats Expectations

In its H1 FY25 trading update, Oxford Nanopore announced estimated revenue of approximately £105 million, a 28% increase on a constant currency basis compared to H1 2024 (£84.1 million). This performance exceeded market expectations and was primarily driven by rapid growth in its PromethION product line, which saw an approximate 59% year-on-year surge.

The Group also reported broad-based growth across both Research and Applied markets. Applied markets—including BioPharma, Clinical, and Industrial—expanded by around 33%, while Research markets grew by 22%. Geographically, the EMEAI and APAC regions led with over 30% year-on-year growth on a constant currency basis, while the Americas posted a 17% rise despite ongoing research funding uncertainties.

Path to Profitability Supported by Operational Gains

Oxford Nanopore continues to make strategic headway toward profitability. Although the gross margin is expected to be slightly lower than H1 FY24 (58.8%) due to a one-off non-cash inventory charge and currency headwinds, targeted cost and pricing initiatives remain on track. Gross margin improvements were largely aided by increased customer uptake of capital purchases.

The company also reported a reduced adjusted EBITDA loss year-on-year, a result of strict cost discipline and margin expansion. As of 30 June 2025, the Group holds cash position of approximately £337 million, supporting ongoing investment and innovation while improving working capital dynamics through better cash flow conversion.

Positive Outlook with Continued Momentum

Oxford Nanopore reaffirmed its full-year guidance, citing its first-half execution and continued momentum across all key areas of the business.