Gold is 2025’s best performer. UBS sees more upside
On Friday, Jefferies analyst Tycho Peterson upgraded GeneDx stock, trading on (NASDAQ:WGS), from Hold to Buy, maintaining a price target of $80.00. The stock, currently trading at $56.36, has experienced significant volatility recently, with InvestingPro data showing a 16% decline over the past week despite a remarkable 177% gain over the last year. The upgrade followed a series of meetings with the company’s top executives in London earlier this week. Peterson expressed confidence in the company’s growth prospects, particularly highlighting an anticipated volume growth exceeding 30% for the year 2025.
The analyst’s optimism is partly based on a projected second half ramp-up of about 40%, driven by expansions in the NICU sector and the introduction of new indications. The growth trajectory is expected to show a quarter-over-quarter increase of 10% in the second quarter, with the fourth quarter outperforming the third.
Peterson also noted that GeneDx is positioned to benefit from additional cost of goods sold (COGS) reductions, which could provide more room for margin expansion beyond its current 65% gross margin. This comes as a significant point of interest following a recent sell-off, which now places GeneDx’s valuation at an attractive level. According to InvestingPro analysis, the company maintains a healthy financial position with a current ratio of 3.25 and moderate debt levels. According to Peterson, the company trades at approximately 4 times its projected 2026 revenues and 25 times its price-to-earnings (P/E) for 2025.
The analyst’s statement underscored the stock’s compelling valuation in light of its potential for double-digit growth, average selling price (ASP) upside, and a turning point towards profitability. GeneDx’s strategic positioning and financial metrics appear to align with Jefferies’ positive outlook on the stock’s future performance. With revenue growth of 49% in the last twelve months and analysts forecasting profitability this year, investors seeking deeper insights can access comprehensive analysis and 13 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, GeneDx reported its earnings for the first quarter of 2025, revealing a significant earnings per share (EPS) miss despite surpassing revenue expectations. The company reported an EPS of -$0.23, falling short of the forecasted $0.06, while revenue reached $87.1 million, exceeding the anticipated $78 million. GeneDx also announced an acquisition of Fabric Genomics, expected to enhance their genomic interpretation capabilities and add a recurring software-based revenue stream. BTIG analyst Mark Massaro adjusted GeneDx’s price target to $100 from $115, maintaining a Buy rating, despite the stock’s decline following the earnings report. The analyst noted that the market’s expectations had outpaced both analyst predictions and the company’s guidance. GeneDx raised its full-year 2025 revenue guidance to $360-$375 million, with expectations of over 30% growth in exome and genome volume. The company also highlighted significant growth in exome and genome revenues, which saw a 62% year-over-year increase. Additionally, GeneDx plans to integrate AI across its business to improve operational efficiency and reduce costs.
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