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Investing.com - KeyBanc upgraded Exagen (NASDAQ:XGN) stock rating from Sector Weight to Overweight and established a price target of $12.00, citing improved visibility on revenue growth. The stock, which has surged over 320% in the past year according to InvestingPro data, is currently trading near its 52-week high of $8.80.
The upgrade follows several impressive quarters for Exagen, a leader in autoimmune diagnostics primarily focused on lupus testing. KeyBanc noted that Exagen’s revenue guidance implies growth of 17-25% in 2025. With current revenues of $56.7 million and an overall Financial Health score rated as "FAIR" by InvestingPro, the company maintains a healthy current ratio of 2.32, indicating strong short-term liquidity.
Under CEO John Abelli, who joined in 2022, Exagen has strategically shed non-core tests and refocused on its core AVISE CTD test. This refocusing has achieved a 36% average selling price increase from fiscal year 2023 to the second quarter of 2025, reaching $428 with a long-term target exceeding $650.
The diagnostic company expects to deliver positive adjusted EBITDA in the fourth quarter of 2025 and for the full fiscal year 2026, according to KeyBanc’s analysis.
Exagen is also working to expand its market position in connective tissue diagnosis with new biomarkers planned for early 2026, which KeyBanc believes will increase the competitive moat around its core test and expand its pipeline of future diagnostics.
In other recent news, Exagen Inc . announced its second-quarter 2025 earnings, revealing significant developments. The company reported a revenue of $17.2 million, surpassing forecasts and marking the highest quarterly revenue in its history. Despite this achievement, Exagen’s earnings per share (EPS) did not meet expectations, with a reported loss of $0.21 compared to the anticipated $0.15 loss. These recent developments highlight the company’s ability to generate substantial revenue growth, although challenges remain in achieving expected profitability. The revenue results have been viewed positively by the market, reflecting investor confidence in Exagen’s potential for future growth. Additionally, the company’s performance has caught the attention of analysts, who may consider these figures in their future assessments. Investors will likely keep an eye on how Exagen addresses its profitability challenges while maintaining revenue growth.
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