Oxford Nanopore Technologies PLC (LSE:ONT), the DNA sequencing company, retained its 'buy' rating at Citi after reporting second-half 2025 adjusted earnings ahead of expectations, even as it issued lower-than-expected revenue guidance for the next two years.
The company reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) of minus £38 million for the second half of 2025, better than the consensus expectation of minus £42 million and Citi's own estimate of minus £45 million.
Oxford Nanopore issued guidance pointing to weaker-than-expected top-line growth in both 2026 and 2027, reflecting the impact of cuts to US National Institutes of Health funding and a difficult trading environment in China.
However, the company reaffirmed its target of reaching adjusted EBITDA breakeven in 2027 and positive cash flow in 2028, which Citi said was encouraging.
The bank's analysts said the abandonment of a previously stated target for revenue growth of more than 30% per year between 2025 and 2027 had been widely anticipated, given the market headwinds.
The more cautious revenue guidance likely reflected deliberate prudence and some flexibility around the timing of new project launches, they added.
In mid-afternoon trading, the shares were down 1.6% at 112.9p.