MDxHealth SA (MDXH) Stock Forecast & Price Target

MDxHealth SA has displayed notable commercial momentum, with a projected full-year revenue of $87M-$89M, reflecting a year-over-year growth rate of 24-27%. The third quarter of the year reported a revenue increase of 73%, underscored by solid contributions from both tissue- and liquid-based testing products, while ongoing enhancements to test coverage and cross-selling opportunities from acquisitions bolster expectations for sustained double-digit revenue growth in the coming years. Furthermore, management's reaffirmation of 2024 guidance and projections for at least 20% revenue growth in 2025, along with a path toward achieving positive adjusted EBITDA in the first half of 2025, enhance confidence in the company's financial trajectory.

MDxHealth's gross margins decreased to 61.2%, reflecting a year-over-year decline of 370 basis points, which fell short of the company’s forecast of 65.5%, raising concerns about the product mix affecting profitability. Despite management's claim of narrowing cash burn to $2.3 million in the fourth quarter, the company reported an adjusted EPS loss of $0.40, indicating ongoing financial challenges. The operating loss of $4.6 million further underscores the difficulties faced by MDxHealth, particularly as it grapples with pressure on margins and continuing losses.