Guggenheim Reaffirmed Buy on GeneDx at October End, Lifted Price Target to $170 After Q3 Beat

Core Insights - GeneDx Holdings Corp. (NASDAQ:WGS) is highlighted as a top digital health stock following a strong Q3 performance, with Guggenheim raising its price target to $170 and maintaining a "Buy" rating [1][2]. Financial Performance - GeneDx reported Q3 revenue of $116.7 million, representing a 52% year-over-year increase and exceeding analyst expectations by approximately 12% [1]. - Exome and genome revenue reached $98.9 million, up 65%, with test volumes increasing by 33% [1]. - The adjusted gross margin improved to 74% (GAAP 72%), and adjusted net income rose to $14.7 million [1]. Future Guidance - Management raised the full-year 2025 revenue guidance to $425–$428 million, projecting 53–55% growth in exome/genome revenue and a 70–71% adjusted gross margin [2]. - Guggenheim noted that despite increased operating expenses in 2026, it does not anticipate a return to negative EPS, viewing it as an investment in proven growth areas within pediatric and rare-disease genomics [3]. Company Focus - GeneDx specializes in genomic testing, particularly whole-exome and whole-genome sequencing for pediatric and rare disorders, and offers data solutions to support clinical decision-making and precision medicine [4].