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

GeneDx Holdings Corp. (NASDAQ:WGS) is one of the best digital health stocks to buy now.

On October 29, 2025, Guggenheim lifted GeneDx (NASDAQ:WGS) to a $170 price target (Buy) after the company’s blow-out Q3 announcement a day earlier. GeneDx had just reported revenue of $116.7 million, up 52% year over year and roughly ~12% above Street; exome and genome revenue reached $98.9 million, up 65%, with exome/genome test volumes up 33%. Gross profitability widened too: adjusted gross margin improved to 74% (GAAP 72%), and adjusted net income rose to $14.7 million.

Guggenheim Reaffirms Buy on GeneDx, Lifts Price Target to $170 After Q3 Beat

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That print underpins Guggenheim’s call-outs, with exome and genome volumes still compounding, ASPs running higher, and gross margin trending up, hence the bigger target. Management also raised full-year 2025 guidance to $425–$428 million in revenue and 53–55% growth in exome/genome revenue, alongside a 70–71% adjusted gross-margin guide.

Crucially, Guggenheim addressed the 2026 spend comments: even with stepping up opex next year, the firm doesn’t read that as a return to negative EPS, framing it instead as investment against a now-proven scale curve in pediatric and rare-disease genomics.

GeneDx Holdings Corp. (NASDAQ:WGS) specializes in genomic testing, with a focus on whole-exome and whole-genome sequencing for pediatric and rare disorders. Its offerings also include data solutions that support clinical decision-making and precision medicine.

While we acknowledge the potential of WGS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WGS and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.