Fulgent Genetics downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst David Westenberg downgraded Fulgent Genetics to Neutral from Overweight with a price target of $40, down from $65. With the acquisition of Fulgent Pharma, Fulgent Genetics "has one of the widest offerings of products and services in the industry," Westenberg tells investors in a research note. However, the analyst thinks the company’s mission "has become potentially too wide," and he’d like to "wait out the near-term integration and execution process." Fulgent deserves credit for its execution through COVID, but there aren’t many successful combined esoteric lab/drug company models, which makes the stock’s risk/reward balanced, says Westenberg.