Skip to main content
Premium Trial:

Request an Annual Quote

Craig-Hallum Initiates Coverage of GeneDx With Buy Rating

NEW YORK – Investment bank Craig-Hallum said Wednesday that it has initiated coverage of GeneDx with a Buy rating and a $43 per-share price target.

In a note to investors, Craig-Hallum analyst Bill Bonello wrote that the bank considers GeneDx a "leading provider of exome and genome sequencing for pediatric rare diseases" and believes the company can generate "sustainable" growth in its whole-exome and whole-genome sequencing businesses with improving gross margins and a clear path to profitability.

"What differentiates GeneDx from these competitors is bioinformatics and data analysis," Bonello noted. "The company is an expert at processing whole exomes and whole genomes, efficiently and at scale."

Bonello said the bank is optimistic that GeneDx will continue to seize market opportunities, with testing for biopharma and newborn screening becoming potential growth drivers for the company in the coming years.

He also noted that there is an opportunity for GeneDx to drive higher average selling prices for the WES and WGS services as states continue to expand Medicaid coverage and the company continues to improve its revenue capture with commercial payors.

Stamford, Connecticut-based GeneDx rebranded from Sema4 last year to focus on WES and WGS as well as related analysis to support precision medicine, particularly in rare pediatric diseases.

GeneDx's exome and genome sequencing revenues grew 43 percent in 2023 and 96 percent year over year in Q1 of this year.