Thursday - Scotiabank has initiated coverage on Myriad Genetics (NASDAQ:MYGN), an advanced diagnostics company, with a Sector Outperform rating and a price target of $29.00. The firm highlighted the company's focus on genetic testing and precision medicine, which spans applications in oncology, women’s health, and mental health.
Myriad Genetics has been undergoing a significant transformation aimed at optimizing its product portfolio and operational capabilities. Scotiabank noted that the company's efforts have started to yield results in the past 12-18 months. However, the firm believes Myriad Genetics is still in the early stages of realizing its full growth potential and achieving sustainable profitability.
According to Scotiabank, Myriad Genetics is trading at a discount compared to its peers in the advanced diagnostics sector. They suggest that this presents a considerable opportunity for the stock to appreciate over the next year. The analyst from Scotiabank expressed confidence in the company's ability to continue driving double-digit top-line growth and achieving positive adjusted operating margins.
In other recent news, Myriad Genetics has been the subject of revised earnings expectations and a price target upgrade by Piper Sandler. The firm has raised its target for Myriad Genetics to $28, maintaining an Overweight rating. The updated forecast for 2024 anticipates $831 million in revenue and $0.03 in earnings per share (EPS), slightly higher than previous estimates. Expectations for 2025 and 2026 have also been revised upwards, predicting revenues of $901 million and $970 million, respectively, with corresponding EPS of $0.03 and $0.24.
Moreover, Myriad Genetics has reported robust first-quarter results, with a 12% year-over-year revenue increase driven by their prenatal and GeneSight businesses. The company is nearing breakeven on an adjusted EPS basis and has achieved positive adjusted EBITDA. Myriad Genetics has maintained its full-year guidance for 2024, with expected revenue between $820 million and $840 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.