GeneDx stock initiated with Overweight rating by Piper Sandler

Investing.com - Piper Sandler initiated coverage on GeneDx (NASDAQ:WGS) with an Overweight rating and a $110.00 price target on Wednesday. The stock, currently trading at $85.22, has demonstrated remarkable performance with a 185.88% return over the past year, according to InvestingPro data.

The research firm cited expectations that GeneDx can maintain double-digit growth rates in its primary whole genome/exome business through increased testing volumes and modest average selling price (ASP) increases.

Piper Sandler noted that while ASP growth is expected to slow compared to 2024, continued shifts toward greater whole genome testing and increased payer adoption should boost rates. New drug developments requiring early detection and diagnosis are also expected to drive volume growth.

The firm highlighted GeneDx’s strong market position, including an 80% market share among genetics experts and 13% among pediatric neurologists.

Piper Sandler also pointed to GeneDx’s approximately $160 million in cash and short-term investments, along with positive cash flow, as factors enabling future strategic acquisitions similar to its Fabric Genomics purchase in the second quarter of 2025. With a strong current ratio of 3.25, the company appears well-positioned for strategic growth. For deeper insights into GeneDx’s financial health and growth potential, including 10+ additional ProTips, check out the comprehensive analysis available on InvestingPro.

In other recent news, GeneDx Holdings Corp has reported its first-quarter 2025 financial results, highlighting both challenges and achievements. The company faced a significant earnings per share (EPS) miss, reporting -$0.23 compared to the forecasted $0.06. However, GeneDx exceeded revenue expectations with $87.1 million, surpassing the anticipated $78 million. The company also noted a 62% year-over-year growth in exome and genome testing revenues, emphasizing its strong market presence in genomic testing. Jefferies analyst Tycho Peterson upgraded GeneDx’s stock rating from Hold to Buy, citing confidence in the company’s growth prospects and anticipated volume growth. Meanwhile, BTIG analyst Mark Massaro revised the price target for GeneDx to $100 from $115, maintaining a Buy rating despite the stock’s recent decline. GeneDx’s strategic initiatives, including the acquisition of Fabric Genomics, aim to enhance its genomic interpretation capabilities and expand its market reach. The company has also been positively impacted by the American Academy of Pediatrics’ recommendation for earlier genetic testing, which aligns with GeneDx’s services.

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