Myriad Genetics (MYGN – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on May 6. Analyst Puneet Souda from Leerink Partners maintained a Hold rating on the stock and has a $7.00 price target.
Puneet Souda has given his Hold rating due to a combination of factors impacting Myriad Genetics. The company has recently undergone a significant reduction in its financial guidance, with a $35 million cut in revenue expectations for the fiscal year 2024, representing a 4% decrease. This adjustment reflects challenges in both the GeneSight and Hereditary Cancer segments, raising concerns about the company’s ability to stabilize and grow its revenue streams in the near term.
Additionally, the new CEO, Sam Raha, has initiated a comprehensive review of the company but has not reaffirmed long-term growth plans, adding uncertainty to Myriad Genetics’ future outlook. The guidance cut is attributed to issues such as reduced volumes and marketing reallocations in GeneSight, as well as ongoing difficulties with electronic medical record integrations in Hereditary Cancer. These factors contribute to the decision to remain cautious and maintain a Hold rating until there is more clarity and confidence in the company’s growth trajectory.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $7.00 price target.
MYGN’s price has also changed dramatically for the past six months – from $17.570 to $7.270, which is a -58.62% drop .