GeneDx Holdings (WGS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Brandon Couillard from Wells Fargo maintained a Hold rating on the stock and has a $78.00 price target.
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Brandon Couillard has given his Hold rating due to a combination of factors impacting GeneDx Holdings. The recent guidance from the American Academy of Pediatrics (AAP) recommending exome/genome testing as a first-line diagnostic tool for children with developmental delays and intellectual disabilities presents a significant market opportunity for GeneDx. However, while this change could potentially convert a large number of chromosomal microarray tests to exome/genome tests, the financial benefits are not expected to be immediate.
Couillard notes that although the AAP update was not included in the 2025 financial guidance, there could be some impact in the latter half of 2025 if existing general practitioners quickly adopt the new testing guidelines. Nonetheless, the broader market education and conversion process is anticipated to take 18-24 months, delaying the full financial impact until 2026. This timeline, coupled with the need for market education and the current focus on profitability, supports the Hold rating as the company navigates these changes.
Based on the recent corporate insider activity of 67 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WGS in relation to earlier this year.