GeneDx Holdings (WGS) has received a new Buy rating, initiated by Piper Sandler analyst, David Westenberg.
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David Westenberg’s rating is based on GeneDx Holdings’ strong position in the rare disease testing market, where it holds a significant first-mover advantage. The company has amassed over 20 years of patient data and has the largest dedicated salesforce in the industry, which enhances its diagnostic capabilities and widens its lead in the market.
Additionally, GeneDx is on the cusp of profitability, with expectations of a 20% compound annual growth rate in its exome and genome franchise from 2024 to 2027. Despite a temporary stock decline due to seasonal factors, the company’s strategic positioning and leadership strength, particularly under CEO Katherine Stueland, suggest a clear path to sustainable growth. The potential for market expansion, especially in newborn genetic testing, further supports the Buy rating as GeneDx is well-positioned to capitalize on these opportunities.
Westenberg covers the Healthcare sector, focusing on stocks such as Illumina, Adaptive Biotechnologies, and Cytek Biosciences. According to TipRanks, Westenberg has an average return of 5.3% and a 47.56% success rate on recommended stocks.
In another report released on June 30, Guggenheim also maintained a Buy rating on the stock with a $115.00 price target.