On Tuesday, GeneDx (NASDAQ: WGS), a genetic testing company, saw its price target increased to $19.00 from $15.00 by BTIG, while the firm maintained a Buy rating on the stock. This adjustment follows a remarkable performance by GeneDx, which experienced a significant after-hours stock price increase of 30%, adding to a year-to-date gain of 300% before their first-quarter earnings call.
GeneDx reported what has been described as possibly the best quarter in the company's history, surpassing revenue expectations by 24 percentage points. The company's impressive results were driven by a 91% year-over-year increase in whole-exome and genome test volume. Additionally, GeneDx's adjusted gross margins (Adj. GMs) reached 61%, which was significantly higher than the anticipated 45%.
The strong quarterly performance led to GeneDx upgrading its revenue and gross margin guidance for 2024, as well as setting a more ambitious cash burn target. According to the company's updated outlook, the path to profitability by 2025 is becoming more apparent. This optimistic financial trajectory contributed to the firm's decision to reiterate its Buy rating and raise the price target for GeneDx shares.
The company's recent achievements and revised financial targets signal a positive outlook for GeneDx, as it continues to make strides in the genetic testing market. The increased price target reflects the firm's confidence in GeneDx's future performance and growth potential.
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