In a report released yesterday, Daniel Brennan from TD Cowen maintained a Buy rating on MDxHealth, with a price target of $5.00.
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Daniel Brennan has given his Buy rating due to a combination of factors including MDxHealth’s strong financial performance and strategic acquisitions. The company’s total revenue grew by 20% year-over-year, demonstrating solid momentum across its portfolio, particularly in both liquid and tissue-based tests. This growth aligns with management’s long-term plan, and the company’s gross margins have improved significantly, indicating effective operational efficiency.
Additionally, the acquisition of ExoDx is expected to be beneficial for MDxHealth, as it should contribute positively to revenue and margins. The acquisition is anticipated to close in September and is seen as a valuable addition to the company’s portfolio. With MDxHealth’s reiterated guidance for fiscal year 2025 and the attractive entry point at 1x EV/’26E Sales, Brennan views the stock as having a promising outlook for sustained profitability and growth.