William Blair analyst Andrew Brackmann has reiterated their bullish stance on MDXH stock, giving a Buy rating on January 7.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Andrew Brackmann has given his Buy rating due to a combination of factors pointing to strengthening fundamentals and attractive valuation. He highlights that fourth-quarter revenue modestly exceeded expectations and test volumes grew solidly, underpinned by strong adoption of liquid-based tests following the Exosome Dx acquisition and successful migration from Select MDx to ExoDx. He notes that these operational improvements, together with a 23% year-over-year revenue increase and a $29 million year-end cash position, indicate that the business is building momentum and is better positioned to move toward profitability and cash generation.
Brackmann also emphasizes that MDxHealth’s 2026 revenue outlook meaningfully surpasses current Street forecasts, with guidance implying robust double-digit growth and reflecting the strength of the company’s diagnostic portfolio. He points to management’s focus on cost discipline and the path toward achieving a positive AEBITDA margin run-rate by the end of 2026 as further support for the investment case. In addition, the revised schedule for earnout payments to Exact Sciences, which extends the timeline and eases near-term cash obligations, provides the company with additional financial flexibility. With the shares trading at roughly two times next-twelve-months revenue, Brackmann believes the current price does not fully reflect MDxHealth’s growth potential and commercial platform, justifying his Buy recommendation.
In another report released on January 7, TD Cowen also maintained a Buy rating on the stock with a $7.00 price target.