Daniel Brennan, an analyst from TD Cowen, maintained the Hold rating on Myriad Genetics. The associated price target remains the same with $6.00.
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Daniel Brennan’s rating is based on several factors that influenced Myriad Genetics’ recent performance. The company reported a positive second quarter after a weak first quarter, with sales exceeding expectations by 5%. This improvement was largely driven by strong performance in Hereditary Cancer Testing and GeneSight, although the Prenatal segment remained weak. Despite raising guidance for 2025, the outlook for the second half of the year suggests a potential decline in year-over-year growth, which tempers the optimism from the second quarter’s results.
Myriad Genetics’ stock was trading at a low valuation relative to its peers, despite holding a leading position in diagnostic testing categories. The company’s challenges, including the loss of a GeneSight contract, electronic medical record issues affecting volumes, and CEO turnover, have contributed to a significant year-to-date stock price decline. Although the second quarter results were better than expected, the ongoing strategic review and the need for more evidence of sustainable improvement in trends justify maintaining a Hold rating until further clarity is achieved.