Piper Sandler analyst David Westenberg upgraded the rating on Myriad Genetics (MYGN – Research Report) to a Buy today, setting a price target of $12.50.
David Westenberg has given his Buy rating due to a combination of factors influencing Myriad Genetics’ current market position and future potential. Despite recent challenges, including the loss of a private payer’s reimbursement and changes in NCCN guidelines, the company maintains a strong position in its market with high margins. The stock has significantly decreased in value, presenting a potential opportunity for growth as the new CEO, Sam Raha, implements strategic changes.
Westenberg acknowledges the risks associated with Myriad Genetics, such as the potential for missing current guidance and market share losses. However, he sees potential in the company’s core franchise in esoteric testing, particularly in hereditary cancer and reproductive health, where innovation and branding could drive growth. The new management under Sam Raha is expected to simplify the company’s growth narrative, making it more attractive to investors, despite the need to potentially reset long-term growth expectations.
According to TipRanks, Westenberg is a 2-star analyst with an average return of 0.3% and a 43.00% success rate. Westenberg covers the Healthcare sector, focusing on stocks such as Myriad Genetics, Exact Sciences, and Zoetis.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $22.00 price target.