YB new stock pitches

Exagen (XGN) is a molecular diagnostics company focused on autoimmune diseases, with its flagship AVISE CTD test being twice as effective as standard care for conditions like lupus, reducing diagnosis time from six years while saving costs through fewer doctor visits and tests. The company has undergone a significant turnaround under CEO John Aballi (who sold his previous companies) and newly appointed turnaround CFO Jeff Black, cutting annual burn from $35M to near breakeven. XGN trades at just 1.9x revenue versus peers at 4.4x, creating an attractive valuation gap. The company's competitive advantages include proprietary CB-CAPs technology, algorithmic analysis, reimbursement codes, and new T-cell markers that improve test sensitivity and ASP. With Medicare coverage, growing commercial payer momentum, and potential biopharma partnerships (described as a 'sleeper opportunity'), XGN has a clear path to 20%+ revenue CAGR and profitability by Q4 2025. Catalysts include earnings beats, expanded coverage, clinical utility publications, and M&A potential, supporting a $16-18 price target (2.5-3x upside).

Read the full article here. Read time: 7 min

Illumin Holdings Inc. (ILLM.TO), a programmatic ad platform specializing in 'journey advertising,' has emerged from several difficult years to show renewed topline growth and operating leverage, now trading at approximately 7.5x forward EV/EBITDA with potential for over 50% annual EBITDA growth. The company, which differentiates itself by mapping consumer decision flows across channels for better targeting and ROIs, has about 50% of its C$104 million market cap in net cash, providing financial stability without needing to burn cash or raise more capital. Management has been actively buying shares in the open market and implementing a 10% share buyback program, signaling confidence in the company's direction. Despite execution stumbles and platform rollout delays from 2021-2023, 2024 has marked a positive shift as Illumin cut costs, improved its go-to-market strategy, and developed a more efficient sales structure, particularly in the U.S. where it previously struggled. Key risks include the crowded and volatile adtech space, continued macro uncertainty, Illumin's status as a small player fighting for relevance, pressures from a large client reducing spending, and gross margin challenges due to shifts in mix.

Read the full article here. Read time: 2 min

News Corporation (NWS) contributed +65bps to NAV, driven by its 8% portfolio weight and USD strength that converted a +3% local return to +8% in GBP. The company recently sold its 65% Foxtel stake to DAZN at a $2.1bn enterprise value (7x EBITDA), with News Corp's portion valued at $1.1bn (4%/8% of NAV/market cap). While this represents an attractive valuation for one of News Corp's less desirable assets, enthusiasm is tempered as payment was made in unlisted DAZN stock (though the inter-company loan was repaid). The Foxtel sale potentially clears the path for more significant strategic and structural changes, with management noting 'our consideration of the appropriate structure does not end with that significant decision.' The market appears to overlook potential structural simplification and value unlocking, particularly regarding News Corp's 61% stake in REA Group, which accounts for 72% of its market cap. Meanwhile, investors benefit from attractive NAV growth prospects, especially from Dow Jones (34% of NAV), making News Corp one of the company's largest positions at 7% of NAV.

Read the full article here. Read time: 2 min