10x Genomics (TXG) is offering a compelling product cycle but its two franchises are pulling in opposite directions, RBC Capital Markets said in a note Tuesday.

"Spatial and single cell represent two opposing forces in the growth mosaic," the report said.

The company is a leader in high-plex spatial molecular profiling, enabling researchers to map gene and protein expression within intact tissue, the note said. It has over 60% market share.

The spatial business is still relatively early in adoption and has been growing at a double-digit rate, even before the upcoming Atera launch, the note said.

But single-cell remains a structural growth dampener, with double-digit declines in price-per-reaction for single cell offset by a double-digit growth in reaction volume, the report said.

"We're forecasting only flattish performance for 10x's single cell business over the next five years, meaningfully dilutive to the overall growth algorithm," it said.

RBC started coverage with a sector perform rating, saying that it could become more constructive on the stock if the single-cell franchise could return to "meaningful" growth.

Price: 61.36, Change: -1.10, Percent Change: -1.75