Cathie Wood’s Top 5 Small-Cap Stock Picks

3. Twist Bioscience Corporation (NASDAQ:TWST)

Number of Hedge Fund Holders: 16

Cathie Wood’s Ark Investment Management’s Holdings: $213,353,000

Percentage of Cathie Wood’s Ark Investment Management’s Portfolio: 1.26%

Market Capitalization as of July 26: $2.37 billion

Twist Bioscience Corporation (NASDAQ:TWST) is a San Francisco, California-based biotech company that produces synthetic DNA tools and related products.

On July 13, Luke Sergott at Barclays increased the price target on Twist Bioscience Corporation (NASDAQ:TWST) from $40 to $45 and maintained an Overweight rating on the stock. The analyst thinks that macroeconomic-related concerns are weighing on the biotech sector. However, Sergott believes that tool manufacturing would not be heavily impacted by concerns related to inflation and recession.

Baron Funds shared its stance on Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter. Here’s what the firm said:

“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future. As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”