GeneDx stock target cut to $100 by BTIG, maintains Buy rating

On Thursday, BTIG analyst Mark Massaro revised the price target for GeneDx (NASDAQ:WGS) to $100 from the previous $115 while retaining a Buy rating on the stock. Massaro’s comments came after GeneDx’s shares plummeted by 43% in response to its first-quarter results, which he believes was an excessive reaction largely attributed to natural events and optimistic market expectations. According to InvestingPro data, the stock is currently trading below its Fair Value, with analyst targets ranging from $78 to $115.

GeneDx reported a robust 9% revenue beat for the quarter and increased its full-year revenue guidance. The company has shown impressive growth with revenue increasing 48.81% over the last twelve months to $330.14 million. The updated forecast includes the impact of a new acquisition and accounts for the overperformance in the first quarter, but it did not exceed these factors, leading to some disappointment on Wall Street. Despite beating BTIG’s projections, GeneDx’s core exome/genome testing volumes did not meet the higher "whisper number" anticipated by some investors.

The company noted that the California wildfires and snowstorms had disrupted operations for approximately one to two days during the quarter. Additionally, the leap year resulted in one less working day compared to the previous year, further affecting the quarter’s performance.

Massaro suggested that the market’s expectations had outpaced both analyst predictions and the company’s own guidance, contributing to the sharp decline in the stock’s value. He sees the current lower stock price as an appealing opportunity for potential investors who have been hesitant to invest in GeneDx. With the stock now trading at 4 times BTIG’s 2026 revenue estimates, Massaro reiterated his Buy rating but adjusted the price target to reflect the recent developments.

In other recent news, GeneDx Holdings Corp reported its first-quarter 2025 financial results, which included a notable earnings per share (EPS) miss but exceeded revenue expectations. The company reported an EPS of -$0.23, significantly below the forecasted $0.06, while revenue reached $87.1 million, surpassing the anticipated $78 million. Despite the earnings miss, GeneDx maintained profitability for the third consecutive quarter and experienced substantial growth in its exome and genome testing sectors, with a 62% year-over-year increase. The company also announced its plans to acquire Fabric Genomics, which is expected to enhance GeneDx’s genomic interpretation capabilities. Analysts from Craig Hallum Capital Group and TD Cowen discussed the company’s strategic initiatives, including its focus on expanding genetic testing in the NICU and outpatient settings. GeneDx has also raised its full-year 2025 revenue guidance to between $360 million and $375 million, with expectations of over 30% growth in exome and genome volume. The company continues to integrate AI across its operations and pursue partnerships with pharmaceutical companies to leverage its genomic data for therapeutic development.

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