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WellsFargo Upgrades GeneDx (WGS) to Overweight

GeneDx Holdings Corp. (NASDAQ:WGS) is one of the 13 High-Risk High-Reward Growth Stocks to Invest In.

WellsFargo upgraded its rating on GeneDX to Overweight (from Equal Weight) on February 9, while retaining the target price at $155. The upgrade was driven primarily by price action and not by any fundamental change at the company, as the firm believes the stock’s 50%+ decline since December is an overreaction. GeneDX, the firm added, is an attractive investment at its current valuation, which heavily discounts the company’s “competitive moat and growth runway.” Finally, Wells Fargo expects the company’s expanded sales force and new markets to act as catalysts in the latter portion of 2026.

Year-to-date, GeneDx’s share price has fallen by up to 30.8%, with much of the decline occurring immediately after the company released its earnings preview on January 12. Their release showed Q4-2025 revenue growing 32% YoY to $121 million and full-year 2025 revenue growing 54% YoY to $427 million.

GeneDx’s management also provided its guidance for 2026. They expect full-year revenue to grow between 33% to 35% in 2026 to $540 million to $555 million. According to Dan Brennan at TD Cowen, the projected growth likely disappointed investors, who viewed the 33%-35% 2026 projection as too conservative compared with 54% growth in 2025.

Despite the recent price decline and the “disappointing” revenue growth guidance, Wells Fargo still likes GeneDx’s growth prospects for 2026. For one, the company announced last January 8 that it would begin selling its unique phenotype-informed, trio-based prenatal test (intended for pregnancies with fetal anomalies) starting in February. On the same day, the company announced its strategic partnership with Komodo Health, which will allow GeneDx to leverage Komodo’s patient insights to create a “longitudinal dataset for rare diseases.”

GeneDx Holdings Corp. (NASDAQ:WGS) is a health intelligence company that collects disease data sets and offers exome and genome testing to diagnose genetic diseases. The company is based in Stamford, CT, and was founded in October 2015 by Eric Schadt.

While we acknowledge the risk and potential of WGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WGS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Cheap Stocks to Buy Right Now and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

Disclosure: None. This article is originally published at Insider Monkey.

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