BioTuesdays

BTIG starts MDx Health at buy; PT $15

Mdx Health

BTIG launched coverage of MDx Health (NASDAQ:MDXH) with a “buy” rating and price target of $15. The stock closed at $9.04 on Nov. 26.

MDx Health is a precision diagnostics company that offers a portfolio of diagnostic tests focused in urology. 

“Rather than relying on traditional tools like the PSA test and digital rectal exam, which lack accuracy and objectivity, MDx Health’s proprietary genomic tests, ConfirmMDx and SelectMDx, provide highly accurate, less invasive and more personalized information to inform urologists how men should be cared for and treated based on their unique genomic profile,” writes analyst Mark Massaro. 

MDx Health’s flagship tests are included in the National Comprehensive Cancer Network  guidelines and have demonstrated strong clinical utility, he added. 

“We model double-digit revenue growth for the next several years and note that shares of MDx trade at a modest 3.3 times our 2022 revenue estimate of about $25-million, which we note is a significant discount to its peers, which trade at about 7.9 times,” Mr. Massaro said. 

He suggests that a successful finalization of the company’s Medicare Local Coverage Determination, which “we expect by around mid-2022, represents a major catalyst for the stock.”

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