GeneDx price target lowered to $85 from $153 at Craig-Hallum

Craig-Hallum analyst Bill Bonello lowered the firm’s price target on GeneDx (WGS) to $85 from $153 and keeps a Buy rating on the shares. The firm notes GeneDx missed Q1 revenue by $10M and lowered full year revenue guidance by $65M at the midpoint. About half of the Q1 shortfall was related to lower-than-expected WES/WGS ASP. The remainder was attributable to shortfalls in other test volume and ASP, data information, and software and interpretation services. The Q1 ASP shortfall is primarily a function of rapid mix shift from WES to WGS among geneticists, which has a lower ASP, Craig-Hallum adds. Despite near-term concerns, the firm continues to have a bullish outlook on the business and stock.