MDxHealth gains after triggering positive ratings from Wall Street

Nov. 29, 2021 12:56 PM ETMDxHealth SA (MDXH)By: Dulan Lokuwithana, SA News Editor

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  • MDxHealth (NASDAQ:MDXH), a recently IPO’ed molecular diagnostics company operating out of Belgium, rose sharply after drawing favorable ratings from several Wall Street analysts who initiated their coverage on the stock.
  • Compared with traditional testing methods such as PSA tests, MDx Health's (MDXH) proprietary genomic tests have a high accuracy level BTIG Research noted issuing a Buy rating on the stock.
  • “ConfirmMDx and SelectMDx, provide highly accurate, less invasive, and more personalized information to inform urologists how men should be cared for and treated based on their unique genomic profile,” analyst Mark Massaro wrote.
  • With a modest multiple of ~3.3x based on the 2022 revenue estimate, MDxHealth (MDXH) trades at a “significant discount” to ~7.9x multiple of rivals, Massaro argues. The price target of $15 per share indicates a premium of ~65.9% to the last close.
  • The analyst also cites an upcoming catalyst for the company in the event of the finalization of its Medicare Local Coverage Determination (LCD) expected in mid-2022.
  • Meanwhile, Oppenheimer with an Outperform rating, notes that over the past two years, the company endured a negative topline growth as new management implemented stricter financial controls and raised test volumes from most profitable and repeat clients.
  • The analyst Kevin DeGeeter views the “transition as painful but necessary to prepare for better operating leverage following expanded reimbursement coverage for SelectMDx.” The price target of $18 per share implies a premium of ~99.1% to the last close.
  • Piper Sandler has also begun its coverage on the stock with an Outperform rating and a $15 per share target.
  • MDxHealth (MDXH) targeted $45M in gross proceeds when it went public early this month.
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