William Blair analyst Andrew Brackmann has maintained their bullish stance on XGN stock, giving a Buy rating today.
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Andrew Brackmann has given his Buy rating due to a combination of factors that highlight Exagen’s strong performance and future potential. The company’s second-quarter results demonstrated significant momentum, with a 14% year-over-year revenue growth, surpassing expectations by 6%. This was largely driven by a 7% increase in testing volume year-over-year and a 14% sequential rise, marking the strongest growth since the strategic shift to prioritize profitable volume.
Brackmann also notes the company’s effective execution of its growth strategy, as evidenced by the durability in both volume and average selling price improvements. Management’s anticipation of achieving AEBITDA positivity by the fourth quarter, contingent on hitting the upper end of their revised revenue guidance, further supports this positive outlook. With the stock already up 174% year-to-date, Brackmann believes that Exagen’s progress towards profitability and potential for further volume growth provide room for modest upside and multiple expansion, justifying the Buy rating.
In another report released today, KeyBanc also upgraded the stock to a Buy with a $12.00 price target.