XGN - Exagen: Buy An Undervalued Diagnostics Developer That Is On The Path To Profitability
2025-04-26 03:31:32 ET
Summary
- We initiate coverage on Exagen with a Buy rating, citing a promising turnaround with growing diagnostics, improved margins, and new biomarker tests for lupus and RA.
- Despite a rocky history, Exagen's recent momentum, modest valuation, and potential upside from new products make it an attractive long-term speculative buy.
- Financially, Exagen reported $55.6 million in 2024 revenue, improved margins, and expects positive adjusted EBITDA by Q4 2025, supported by new product launches.
- Key risks include reimbursement uncertainty, competition, cash burn, and execution challenges, but these are balanced by the stock's current valuation and growth potential.
Introduction
We initiate coverage on Exagen ( XGN ) at Buy. In our view, Exagen’s turnaround is gaining traction. The core AVISE diagnostics franchise is growing, margins are improving, and the company recently added new biomarker tests (for lupus and RA) that should extend its growth runway. Management has honed operations and the path to profitability looks clearer, supporting our positive stance....
Exagen: Buy An Undervalued Diagnostics Developer That Is On The Path To Profitability