WGS Stock Forecast & Price Target

GeneDx Holdings Corp is witnessing a significant shift toward exome and genome-based panels, which has led to an upward trend in average selling prices (ASPs) and gross margins (GMs), currently projected at 70%-71%, up from previous estimates. The company has reported an impressive 65% year-over-year growth in its core exome/genome revenue, alongside a robust 33% increase in core volumes, which positions it favorably for achieving its target of 30%+ core volumes in 2025. Furthermore, GeneDx has raised its 2025 revenue guidance to a range of $425-428 million, reflecting an anticipated growth of 39%-40% year-over-year, driven by strong momentum in testing volume and ASP expansion.

GeneDx Holdings is projected to experience significant cash burn, with an estimated ~$2 million quarterly loss attributed to its Whole Genome Sequencing (WGS) services. The company's reliance on securing a steady supply of sequencers and materials is critical, as any disruptions could substantially hinder operational outcomes. Additionally, despite being contracted with around 80% of health plans, GeneDx faces high denial rates of 45% for reimbursements, which raises concerns about the sustainability of its revenue and commercial success amid potential shifts in payer practices.