On Wednesday, TD Cowen maintained a Hold rating on shares of Myriad Genetics (NASDAQ:MYGN), while increasing the price target to $30.00 from the previous $28.00. This adjustment follows Myriad Genetics' reported revenue beat and stronger-than-anticipated margins and free cash flow (FCF) for the second quarter.
The company, which does not provide quarterly guidance, indicated a 2.5% revenue beat compared to consensus expectations. The positive second-quarter results, along with the updated fiscal year 2024 and long-term guidance, are seen as progressive steps toward building confidence in the company's recent performance.
According to the analyst from TD Cowen, Myriad Genetics' stock showed an uptick in the post-market trading session, reflecting the market's favorable reception to the quarterly outcome. This performance is particularly noteworthy given that current Street models have yet to fully account for the company's outlook.
The analyst's commentary highlighted the importance of the second-quarter results and the updated guidance for the fiscal year 2024 and beyond. These factors collectively contribute to a more optimistic view of the sustainability of Myriad Genetics' recent strength in the market.
Myriad Genetics' improved financial metrics, including better margins and free cash flow, have been instrumental in the decision to raise the price target. The company's recent financial performance suggests a positive trend that could influence investor confidence and market expectations for the genetic testing and personalized medicine company.
In other recent news, Myriad Genetics has been the focus of substantial financial attention. The company reported a 12% year-over-year revenue increase in the first quarter, driven by their prenatal and GeneSight businesses, and is nearing breakeven on an adjusted EPS basis. Full-year revenue guidance for 2024 remains between $820 million and $840 million. Scotiabank initiated coverage on Myriad Genetics with a Sector Outperform rating and a price target of $29.00, noting the company's potential for growth and sustainable profitability. Meanwhile, Piper Sandler raised its price target for Myriad Genetics to $28, maintaining an Overweight rating. The firm updated its revenue and earnings per share (EPS) forecasts for 2024, 2025, and 2026, predicting steady growth. These recent developments underscore the positive outlook for Myriad Genetics from financial institutions.
InvestingPro Insights
Myriad Genetics (NASDAQ:MYGN) has been a topic of discussion following its recent earnings report, and the latest insights from InvestingPro offer a deeper dive into the company's financial health. With a market capitalization of $2.41 billion, Myriad Genetics operates with a moderate level of debt and is navigating through a phase where profitability has eluded them over the last twelve months. However, analysts are optimistic, predicting the company will turn profitable this year.
InvestingPro data reveals a robust revenue growth of nearly 14.78% in the last twelve months as of Q2 2024, which aligns with the revenue beat and strong margins reported in the second quarter. Despite not paying dividends, Myriad Genetics has demonstrated a strong return over the last three months, with a 31.24% total return, which may capture the interest of growth-focused investors.
Investors looking to delve further into Myriad Genetics' prospects can find additional insights on InvestingPro. There are 5 more InvestingPro Tips available, offering a comprehensive analysis of the company's financials, market performance, and future expectations. These tips can be accessed at https://www.investing.com/pro/MYGN, providing a valuable resource for those considering an investment in the personalized medicine space.
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