Stock market today: S&P 500 falls as government shutdown, trade jitters persist
Investing.com - Jefferies raised its price target on GeneDx (NASDAQ:WGS) to $105 from $80 on Wednesday, while maintaining a Buy rating on the genomics company’s stock.
The price target increase follows an American Academy of Pediatrics (AAP) update released Tuesday that impacts GeneDx’s business outlook. Jefferies based the new target on a discounted cash flow analysis that values the company at approximately 8 times its projected 2026 revenues.
Jefferies kept its 2025 estimates for GeneDx unchanged but raised its revenue projections for 2026 and 2027 by 4% and 3%, respectively. The firm also increased its growth forecasts for years beyond that timeframe.
The 8x multiple applied to 2026 revenue aligns with both historical valuations (6-9x) and those of high-growth diagnostic peers (6-10x), according to Jefferies. The firm believes this valuation is justified by "multi-year tailwinds in an untapped market, with little to no competition for WGS."
GeneDx specializes in whole genome sequencing (WGS) technology, which provides comprehensive genetic analysis for diagnostic and research applications in healthcare.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.