In a report released yesterday, Daniel Brennan from TD Cowen reiterated a Buy rating on MDxHealth (MDXH – Research Report), with a price target of $7.00.
Daniel Brennan has given his Buy rating due to a combination of factors that highlight MDxHealth’s strong performance and promising future outlook. The company’s largest product, GPS, demonstrated significant growth, and the overall prostate diagnostics portfolio is poised for continued expansion. The stock is trading at an attractive valuation of less than 1x EV/Sales, with a growth rate exceeding 20% and a history of surpassing quarterly expectations.
MDxHealth’s financial results for the fourth quarter were in line with pre-announcements, showing a 28% year-over-year increase in total revenue. The company has maintained strong gross margins and effective operational expense management. With a reiterated guidance for 2025 and a target for adjusted EBITDA profitability in the first half of the year, Brennan sees the current valuation as an appealing entry point given the company’s robust growth trajectory.