MDxHealth shares reiterate Buy rating on raised FY’24 revenue guidance By Investing.com

On Monday, MDxHealth SA (NASDAQ:MDXH) shares received continued support from BTIG with a reiteration of a Buy rating and an $8.00 price target. The company’s stock rose 8% following the announcement of a 7% second-quarter revenue beat over expectations. MDxHealth also increased its full-year 2024 revenue outlook, exceeding the recent quarter’s performance, signaling another period of steady operational achievement.

The company, known for its comprehensive solutions in prostate diagnostics, has shown impressive growth, with a 89% year-over-year revenue increase in 2023 and a 42% organic growth. The analyst from BTIG highlighted MDxHealth as a compelling small-cap growth and value investment, noting that it currently trades at just 1.0 times the firm’s 2025 revenue estimate of $94 million. This valuation stands below the historical average of approximately 3 to 7 times for peers in the sector.

Despite the positive preannouncement, BTIG has chosen not to revise their estimates at this time. Instead, they plan to update their financial projections following the release of MDxHealth’s complete second-quarter results, which are scheduled to be reported on August 21st. The analyst’s comments underscore confidence in the company’s ability to surpass the raised revenue guidance based on its consistent performance.

MDxHealth’s proactive communication about its financial trajectory has been well-received in the market, as reflected in the stock’s positive movement. Investors are likely to watch closely for the forthcoming detailed quarterly report to gauge the company’s ongoing growth potential and operational efficiency.

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