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.

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.

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Disclosure: None.