Myriad Genetics Faces Revenue Declines and Strategic Challenges: Hold Rating Maintained

Myriad Genetics (MYGN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Daniel Brennan from TD Cowen maintained a Hold rating on the stock and has a $8.00 price target.

Daniel Brennan has given his Hold rating due to a combination of factors affecting Myriad Genetics. The company reported a weak first quarter, with sales falling short of expectations and a revised guidance indicating lower growth than previously anticipated. Key challenges include significant revenue declines in their GeneSight and Women’s Health Hereditary Cancer (HCT) segments, primarily due to the loss of UNH coverage and electronic medical record (EMR) integration issues, respectively.
Management is currently undergoing a strategic review to address these challenges, but the ongoing issues in major growth areas suggest that recovery may take several quarters. The company’s guidance has been lowered, reflecting these persistent difficulties, and the strategic review is expected to take months to complete. Given these uncertainties and weakening business trends, Brennan maintains a Hold rating, with a reduced price target of $8, down from $11, based on revised forecasts.