Exagen’s Positive Outlook: Buy Rating Backed by Strong Performance and Growth Potential

William Blair analyst Andrew Brackmann has reiterated their bullish stance on XGN stock, giving a Buy rating yesterday.

Andrew Brackmann has given his Buy rating due to a combination of factors that suggest a positive outlook for Exagen. The company’s fourth-quarter performance was favorable, with revenue aligning with prior announcements and better-than-expected margins. The guidance for the upcoming quarter also meets market expectations, and there is an anticipation of achieving adjusted EBITDA positivity by the end of 2025.
A key factor in this positive assessment is the anticipated successful launch of new biomarkers, which are expected to increase average selling prices and expand the use of the AVISE test. This development is projected to enhance revenue per test, improve gross margins, and contribute to operating leverage. With the stock currently trading at a low multiple relative to its 2025 revenue projections, Brackmann views the stock as undervalued, reinforcing his Buy rating.

In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $5.00 price target.