BTIG reduced its price target for GeneDx Holdings Corp. (WGS) to $170 from $200 while keeping a Buy recommendation on the shares. The stock is trading near $87.08, down roughly 33% year-to-date and about 32% over the past six months, reflecting investor skepticism despite the company’s reported growth trajectory.
The analyst adjustment followed GeneDx’s fourth-quarter earnings call, where the company reaffirmed the previously announced quarter results and its 2026 guidance. Management provided additional color on what is expected to drive the full-year outlook, prompting BTIG to factor in timing effects when updating its target.
GeneDx is forecasting first-quarter 2026 volumes to rise about 33% year-over-year on a baseline basis. The company has substantially expanded its commercial organization — nearly tripling its sales force — and entered several new geographic and customer segments that typically require a ramp-up period to generate steady contributions. BTIG pointed to disruptive weather events in the first quarter and the staged roll-out of new market activity as potential near-term headwinds to results.
BTIG characterized 2026 as likely to be back-end loaded, similar to the pattern it saw in 2025, driven by the time needed for the enlarged sales organization to iterate and for new market initiatives to begin contributing meaningfully. Despite the timing caution, the firm expressed a favorable view of the company’s underlying business fundamentals and its new growth opportunities.
On valuation, GeneDx shares currently trade at roughly 4.3 times BTIG’s 2026 revenue estimate of $548 million. BTIG noted this multiple represents a three-point discount relative to small- and mid-cap specialty laboratory peers. The company carries a market capitalization of about $2.55 billion and analysts maintain a consensus "Strong Buy" rating.
GeneDx’s fourth-quarter results were mixed. The company reported revenue of $121.0 million for the quarter, a 27% increase year-over-year, slightly exceeding the consensus estimate of $120.4 million. Revenue from whole-exome sequencing/whole-genome sequencing (WES/WGS) reached $104.0 million, a 32% year-over-year increase that aligned with expectations. However, earnings for the quarter came in below analyst projections.
Following the quarter, Canaccord Genuity reiterated its Buy rating on GeneDx and kept a $170 price target. TD Cowen likewise maintained a Buy stance and set a $165.00 price target. TD Cowen emphasized that near-term revenue growth is being driven by the company’s core base of geneticists and pediatric neurologists, with additional contributions anticipated from pediatricians and newly introduced products as those channels ramp.
Taken together, the analyst moves and company commentary portray GeneDx as a growth business undergoing a commercial expansion that has near-term timing risks but retains support from multiple research analysts. The market reaction to date reflects concern about the pace at which the expanded sales team and new market entries will translate into sustained revenue growth.
Investors evaluating GeneDx will need to weigh the potential upside from the salesforce expansion and product-market expansion against the possibility of uneven quarterly performance as those initiatives mature.