MDXH - TD Cowen starts MDxHealth at outperform views stock as undervalued

2023-05-31 13:19:46 ET

TD Cowen has initiated coverage of urology diagnostics maker MDxHealth ( NASDAQ: MDXH ) with an outperform rating, stating that it believes the current stock price "fails to reflect the company's progress or revenue/margin/cash flow opportunity ahead."

The investment bank noted that the stock was down around 44% year-to-date while its peers have risen about 20%, creating what it sees as "an attractive entry point."

TD Cowen said it sees a "credible" path to high-teen revenue growth with "significantly stronger" margins and positive free cash flow, "which we don't believe is reflected in the current valuation."

The bank's price target for the stock is $7.

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