Exagen’s Strong Q1 Earnings and Growth Potential Justify Buy Rating

Kyle Mikson CFA, an analyst from Canaccord Genuity, maintained the Buy rating on Exagen (XGN – Research Report). The associated price target remains the same with $5.00.

Kyle Mikson CFA has given his Buy rating due to a combination of factors including Exagen’s strong first quarter earnings, which surpassed expectations, and the company’s effective cost management strategies. The reported average selling price per test showed a significant increase from the previous quarter, indicating successful pricing strategies. Additionally, the consistent test volume in spite of earlier pricing disruptions suggests resilience and a potential for growth. Management’s confidence in overcoming past challenges and their upward revision of revenue and adjusted EBITDA forecasts also contribute to the positive outlook.

Notably, Exagen is making strides in its reacceleration strategy and is on track to achieve cash flow breakeven. The company’s ability to maintain a high gross margin close to its target, the introduction of new diagnostic markers with potential unmatched performance, and the anticipation of continued test volume increases all position Exagen favorably for future growth. Mikson’s assessment highlights the company’s underappreciated market position and the potential for significant returns, justifying the Buy rating.

In another report released yesterday, BTIG also reiterated a Buy rating on the stock with a $5.00 price target.

XGN’s price has also changed moderately for the past six months – from $1.460 to $1.640, which is a 12.33% increase.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Exagen (XGN) Company Description:

Exagen Diagnostics Inc was incorporated under the laws of the state of New Mexico in 2002. The Company is a commercial-stage diagnostics company committed to addressing the unmet need for the accurate diagnosis and monitoring of patients affected by autoimmune rheumatic diseases. It currently markets four products under its Avise brand to provide an accurate, timely and differential diagnosis and to optimize the treatment of ARDs. It processed approximately 9,300 patient specimens for its diagnostic product line, Avise SLE. It markets and sells solutions to community rheumatologists.