In a report released today, Rachel Vatnsdal from J.P. Morgan maintained a Sell rating on Myriad Genetics (MYGN – Research Report), with a price target of $17.00.
Rachel Vatnsdal’s rating is based on the concerns about Myriad Genetics’ ability to sustain profitable growth and the visibility into the success of new product launches. Despite the company’s in-line guidance for 2024 and slight revenue growth, there is skepticism regarding the long-term strategy for revenue generation. Vatnsdal acknowledges that while the company has shown some signs of recovery, there is a lack of clarity on how it will grow revenues sustainably with its current portfolio. Moreover, the recent appreciation in the stock price raises questions about the risk/reward balance, particularly as Myriad Genetics operates in highly competitive markets and is set to introduce several new products.
The financials further underscore the Sell rating, with gross margins and operating expenses not meeting the expectations set by the Street. Myriad Genetics reported adjusted gross margins and operating expenses that were lower and higher, respectively, than what was anticipated. Additionally, there is a projected average selling price compression in the forthcoming year. These financial pressures, combined with the stock’s strong year-to-date performance outpacing the broader healthcare sector, suggest that the current valuation may not be supported by the company’s fundamental outlook, reinforcing Vatnsdal’s cautious stance on the stock.
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Myriad Genetics (MYGN) Company Description:
Myriad Genetics, Inc. engages in the discovery, development, and marketing of transformative molecular diagnostic test. It operates through the Diagnostics and Other segments. The Diagnostics segment provides testing and collaborative development of testing that is designed to asses an individual’s risk of developing a disease later in life. The Other segment offers products and services to the pharmaceutical, biotechnology and medical research industries, research and development, and clinical services for patients; and also includes corporate services such as finance, human resources, legal, and information technology. The company was founded by Walter A. Gilbert, Mark H. Skolnick, and Peter D. Meldrum in May 1991 and is headquartered in Salt Lake City, UT.
Read More on MYGN:
- Myriad Genetics Reports Strong Fourth Quarter and Full-Year 2023 Financial Results; Fourth Quarter Revenue of $197 Million and Full-Year Revenue of $753 Million Each Grew 11% Year-Over-Year; Delivered GAAP EPS of $(0.36) and Adjusted EPS of $0.04 in the Fourth Quarter 2023; Raising 2024 Revenue Guidance
- Myriad Genetics and National Cancer Center Hospital East in Japan Collaborate on Pan-Cancer MRD Monitoring Clinical Trial, SCRUM-MONSTAR-SCREEN-3
- MYGN Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Myriad Genetics to Release Fourth Quarter and Full Year 2023 Financial Results on February 27, 2024
- Myriad Genetics Appoints Dallas Reed, MD, FACOG, FACMG as Principal Medical Advisor of Women’s Health
