TD Cowen analyst Daniel Brennan maintained a Buy rating on MDxHealth (MDXH – Research Report) today and set a price target of $5.00.
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Daniel Brennan has given his Buy rating due to a combination of factors including MDxHealth’s strong financial performance and promising growth prospects. The company’s first-quarter revenue exceeded expectations, showing a 22% year-over-year increase and surpassing consensus estimates. This growth was largely driven by a significant increase in the volume of tissue-based tests, which saw a more than 40% rise compared to the previous year.
Furthermore, MDxHealth’s management has reiterated their revenue guidance for 2025, projecting a growth rate of over 20%, which aligns with their long-term targets. Despite the company’s shares trading below one times price-to-sales, the balance sheet remains robust, supporting the company’s path to achieving adjusted EBITDA breakeven. These factors collectively contribute to Brennan’s positive outlook and Buy rating for MDxHealth’s stock.
Brennan covers the Healthcare sector, focusing on stocks such as Illumina, NeoGenomics, and Exact Sciences. According to TipRanks, Brennan has an average return of 7.7% and a 41.59% success rate on recommended stocks.