Maintaining a Buy: Conservative Guidance but Solid Demand and Pipeline Support Long-Term Upside

William Blair analyst Andrew Brackmann has reiterated their bullish stance on XGN stock, giving a Buy rating on February 24.

Andrew Brackmann has given his Buy rating due to a combination of factors that, in his view, outweigh the near-term guidance shortfall. While 2026 revenue expectations and the updated path to AEBITDA and cash flow breakeven came in softer than the market anticipated, he sees the outlook as conservative and believes there is room for upside relative to management’s current forecasts.

He also emphasizes that underlying demand trends remain healthy, with test volumes accelerating as the commercial organization gains traction and pricing metrics improving once adjusted for the loss of a client-bill account. In addition, he highlights a growing pipeline, including a myositis program targeted for a 2027 launch, and a balance sheet that appears sufficient to fund the business through the transition to sustainable cash generation, supporting a constructive long-term view on the shares.

Brackmann covers the Healthcare sector, focusing on stocks such as Adaptive Biotechnologies, QuidelOrtho, and Guardant Health. According to TipRanks, Brackmann has an average return of 13.4% and a 49.38% success rate on recommended stocks.

In another report released on February 24, TD Cowen also maintained a Buy rating on the stock with a $10.00 price target.