GeneDx Holdings: Robust Growth, Structural Tailwinds, and Undervalued Long-Term Potential Support Buy Rating

Analyst Kyle Mikson CFA from Canaccord Genuity maintained a Buy rating on GeneDx Holdings and keeping the price target at $170.00.

Kyle Mikson CFA has given his Buy rating due to a combination of factors that highlight GeneDx Holdings’ strong growth profile and improving financial performance. He points to the company’s preliminary fourth-quarter results and 2025 performance, which exceeded both his projections and market expectations, driven chiefly by robust expansion in exome and genome testing. Management’s 2026 outlook, including low- to mid-30% growth in test volumes and revenues, stable high-70% gross margins, and a commitment to sustaining adjusted net income profitability, reinforces his confidence in the business model and operating leverage. He further notes that the company’s cash position and consistent profitability trends help mitigate concerns about elevated spending as the firm invests for future growth.
Kyle Mikson CFA’s rating is also based on a favorable set of structural catalysts that he believes are not fully reflected in the current share price. These include ongoing penetration among genetic specialists, broader uptake by general pediatricians supported by updated AAP guidelines, and improving reimbursement dynamics that should lower denial rates. He also highlights the upcoming launch of GenomeDx Prenatal, the continued integration of Fabric, and expanding Medicare coverage for rapid whole genome and exome testing in critical care and outpatient settings as incremental drivers of demand. After updating his model to reflect higher forward revenue estimates and modest margin expansion, he maintains a $170 price target and views recent share weakness as an opportunity to accumulate a stock that, in his view, underestimates GeneDx’s long-term growth potential.

In another report released on January 21, TipRanks – Google also upgraded the stock to a Buy with a $110.00 price target.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WGS in relation to earlier this year.