Analyst Daniel Brennan of TD Cowen maintained a Buy rating on Exagen, boosting the price target to $11.00.
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Daniel Brennan has given his Buy rating due to a combination of factors that highlight Exagen’s promising financial trajectory. The company demonstrated a strong performance in the second quarter, with revenues surpassing expectations by 5% and volume growth of 7% year-over-year, which was significantly better than anticipated. This positive trend is supported by management’s confidence in continued volume growth, improving pricing strategies, and efforts to reduce cash burn.
Exagen’s leadership, under CEO John Aballi and CFO Jeff Black, has been effective in focusing on profitable accounts, which has contributed to the company’s recent success. The company’s large total addressable market, differentiated clinical utility, and recent financing efforts position it well for future growth. Additionally, Exagen’s plans to achieve cash flow break-even within the next year and the potential for price improvements further strengthen its investment appeal. As a result, Brennan has raised the price target to $11, reflecting these positive developments.
Brennan covers the Healthcare sector, focusing on stocks such as Bruker, Thermo Fisher, and GeneDx Holdings. According to TipRanks, Brennan has an average return of 10.6% and a 48.14% success rate on recommended stocks.
In another report released yesterday, KeyBanc also upgraded the stock to a Buy with a $12.00 price target.