Daniel Brennan, an analyst from TD Cowen, maintained the Buy rating on Exagen. The associated price target was raised to $18.00.
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Daniel Brennan’s rating is based on a combination of factors that highlight Exagen’s potential for growth despite current challenges. The company’s revenue was in line with expectations, driven by a significant increase in test volumes, which offset the impact of lower average selling prices (ASPs). The decline in ASPs was primarily due to a major client transitioning from direct billing to commercial insurance, as well as slower than anticipated progress with new biomarkers.
Despite these ASP headwinds, Exagen’s management remains optimistic about achieving a near-term ASP target of approximately $600 and anticipates further growth in test volumes. The company’s approach towards reaching adjusted EBITDA positivity, coupled with a large and expanding total addressable market, supports a favorable investment outlook. Brennan maintains a price target of $18, underscoring the belief in Exagen’s long-term value proposition.
According to TipRanks, Brennan is a 5-star analyst with an average return of 21.9% and a 57.81% success rate. Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Exact Sciences, and Natera.