MDxHealth: Strong Q1 Performance, Undervalued Stock, and Promising Growth Outlook Justify Buy Rating

MDxHealth (MDXH – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Mark Massaro from BTIG reiterated a Buy rating on the stock and has a $6.00 price target.

Mark Massaro has given his Buy rating due to a combination of factors that highlight MDxHealth’s strong performance and promising outlook. The company reported impressive first-quarter results with a 22% year-over-year increase in organic revenue, driven by significant growth in both tissue-based and liquid-based test volumes. This performance exceeded expectations and underscores the company’s growth potential.
Additionally, MDxHealth reaffirmed its 2025 revenue guidance and is on the verge of achieving adjusted EBITDA profitability, which is a crucial milestone. The stock is currently undervalued compared to its small-cap peers, trading at a lower revenue multiple, which suggests potential for multiple expansion. Furthermore, the company’s strategic positioning as a leader in personalized prostate diagnostics and its robust cash position contribute to the positive outlook, supporting the Buy rating and a price target of $6.

MDXH’s price has also changed slightly for the past six months – from $1.750 to $1.780, which is a 1.71% increase.