In a report released yesterday, Daniel Brennan from TD Cowen maintained a Buy rating on MDxHealth, with a price target of $7.00.
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Daniel Brennan has given his Buy rating due to a combination of factors that indicate a positive outlook for MDxHealth. Despite a slight miss in third-quarter sales, the company showed strong margins and EBITDA performance, largely attributed to strategic changes following the acquisition of ExoDx. This acquisition is expected to drive significant sales growth by 2026 as the integration of ExoDx takes full effect, alongside operational expense control, which will enhance EBITDA and support a favorable view on the stock.
Furthermore, MDxHealth’s decision to focus on high-return products like ExoDx, GPS, Confirm, and Resolve is anticipated to accelerate sales growth into the mid-20% range. Although the company experienced a rare sales miss in the third quarter, the shift in business strategy is expected to result in stronger growth and improved margins. The analyst has raised the price target from $5 to $7, reflecting confidence in the company’s ability to achieve sustainable positive free cash flow and leverage operational expenses effectively.
Brennan covers the Healthcare sector, focusing on stocks such as Natera, Agilent, and Bruker. According to TipRanks, Brennan has an average return of 21.9% and a 57.81% success rate on recommended stocks.