Canaccord cuts Biodesix stock target to $1.50, keeps buy rating

On Wednesday, Canaccord Genuity maintained its Buy rating on Biodesix shares but reduced the price target from $2.50 to $1.50. The adjustment follows Biodesix’s first-quarter 2025 financial results, which fell short of both Canaccord’s projections and the FactSet consensus. The stock, currently trading at $0.36, has declined 76% year-to-date, though InvestingPro analysis indicates it’s trading below Fair Value, with 10+ additional ProTips available for subscribers. The company’s performance in the quarter was notably affected by a reduction in the sales force and a slower-than-expected recruitment of new sales representatives focused on primary care. This hiring is part of an updated commercial strategy aimed at bolstering its sales team to 95 members by the end of the year, up from the current 65.

Despite the reduction in the near-term revenue forecast, Biodesix remains optimistic about its financial trajectory, anticipating a significant increase in revenue during the second half of 2025. The company also expects to reach adjusted EBITDA positivity in the fourth quarter of 2025, with cash flow breakeven to follow.

The shift in Biodesix’s commercial strategy, with an increased emphasis on primary care referrals, could lead to temporary disruptions in its commercial operations. However, Canaccord Genuity believes that this strategic pivot has the potential to enhance long-term revenue growth for the company.

In light of the challenges faced in the first quarter, Canaccord Genuity views Biodesix shares as appealing due to the company’s solid fundamentals and prospects for future growth. Despite the setbacks, the firm’s outlook on Biodesix’s stock remains positive, underpinned by the company’s commitment to its commercial strategy and financial goals for the latter part of 2025.

In other recent news, Biodesix Inc. reported a 21% year-over-year increase in total revenue for Q1 2025, reaching $18 million. Despite this growth, the company revised its revenue guidance for the year downward to $80-85 million, which affected investor sentiment. The company’s net loss improved by 18%, totaling $11.1 million, while its gross margin increased to 79.4%. Biodesix’s lung diagnostic testing revenue grew by 18% year-over-year, contributing significantly to overall revenue. Additionally, the company’s development services revenue saw a substantial 61% increase compared to the previous year. The company aims to achieve adjusted EBITDA positivity by Q4 2025. Biodesix is also focusing on expanding its primary care sales team and exploring the commercialization of its MRD test in the coming years. Furthermore, Biodesix secured a $10 million loan from Perceptive Advisors to strengthen its cash reserves.

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