GeneDx earnings selloff a buying opportunity, says Craig-Hallum

Craig-Hallum recommends using the post-earnings weakness in shares of GeneDx (WGS) as a buying opportunity. The stock is down over 25% following a “modest” Q1 exome and genome volume miss, which is the company’s first ever sequential decline in volumes, the analyst tells investors in a research note. The firm says management noted Q1 volumes were negatively impacted by significantly worse than expected weather impacts as well as one less day. Encouragingly, GeneDx also saw accelerating volumes in March, with strong momentum into Q2, says Craig-Hallum. It believes the company’s exome and genome volume growth will accelerate as the year progresses. The firm reiterates a Buy rating on the shares with a $114 price target The stock in morning trading is down 41%, or $47.56, to $69.41 in morning trading.