GeneDx Holdings, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Brennan from TD Cowen maintained a Buy rating on the stock and has a $165.00 price target.
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Daniel Brennan’s rating is based on several key factors that highlight GeneDx Holdings’ potential for growth. The company reported a strong third-quarter performance, driven by a significant increase in exome and genome testing volumes, which exceeded expectations and led to a notable sales beat. This performance alleviated investor concerns about the anticipated volume ramp in the fourth quarter, as the company demonstrated its capability to manage growth effectively.
Despite an increase in operating expenses, which is part of the company’s strategy to penetrate the pediatrician market, Brennan remains optimistic about GeneDx’s future prospects. The company is investing in expanding its market reach, particularly in the pediatric segment, which presents a substantial opportunity with over 600,000 potential tests. While this investment may impact margins in the short term, there is a clear pathway to revenue growth and margin recovery in the coming years. Consequently, Brennan has raised the price target for GeneDx Holdings, reflecting confidence in the company’s strategic direction and growth potential.
Brennan covers the Healthcare sector, focusing on stocks such as Natera, Guardant Health, and Agilent. According to TipRanks, Brennan has an average return of 18.0% and a 56.54% success rate on recommended stocks.