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Tuesday, Myriad Genetics stock faced a new price target from Jefferies, with analysts lowering their expectations to $11.00 from the previous $13.00, while maintaining an Underperform rating on the company’s shares. Currently trading at $13.78, the stock has experienced significant volatility, with InvestingPro data showing a steep 51% decline over the past six months. The revised target follows Myriad Genetics’ pre-announcement in January and the outlook for 2025, which included the announcement of a CEO transition.
The company’s challenges with its Prolaris and GeneSight products persist, as noted by Jefferies analysts, with no significant changes reported in these areas. Despite maintaining a solid gross profit margin of 69% and achieving 12% revenue growth in the last twelve months, the long-range plan (LRP) for growth has been adjusted to a double-digit percentage increase for the year 2026 and beyond, a downgrade from the previously anticipated 12% growth starting in 2025. This revision accounts for the expected impact from GeneSight, with management planning to offset a significant portion of this headwind through cost reductions.
The CEO transition, which was not entirely unexpected according to Jefferies, adds a layer of uncertainty to Myriad Genetics’ outlook. The firm’s analysts have expressed that the recent updates do not fundamentally alter their underlying thesis on the stock.
In their commentary, Jefferies analysts stated, "Given January’s pre-announce and ’25 guide, the main update was the CEO transition, which was not entirely surprising in our view. Prolaris and GeneSight headwinds were unchanged, but the LRP was tempered to +DD (’26+) from +12% (’25+), accounting for GeneSight as management expects to make up a large portion of the headwind with cost-outs. With little to change the underlying thesis and the CEO transition adding uncertainty, we remain Underperform. PT to $11."
Myriad Genetics, traded on NASDAQ under the ticker (NASDAQ:MYGN), is now navigating through a period of executive change and strategic reassessment, as reflected in the market’s assessment by Jefferies. The company specializes in molecular diagnostics and personalized medicine, providing products that assess an individual’s risk of developing disease. According to InvestingPro, analyst consensus remains mixed with targets ranging from $11 to $29, while the company maintains a moderate debt level and good overall financial health score. For deeper insights into Myriad Genetics’ valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro along with 6 additional ProTips and extensive financial metrics.
In other recent news, Myriad Genetics reported its Q4 2024 earnings, revealing steady revenue growth alongside a maintained earnings per share (EPS) forecast. The company achieved an EPS of $0.03, aligning with analyst expectations, while revenue slightly missed projections, coming in at $211 million compared to the anticipated $213.31 million. Despite the revenue shortfall, Myriad Genetics demonstrated a 7% year-over-year revenue increase, with domestic markets showing a robust 11% growth. The company also reported a gross margin improvement of 300 basis points, reaching 72%. In terms of liquidity, Myriad Genetics maintains a strong position with $158 million available. Looking ahead, the company projects 2025 revenue between $840 million and $860 million, with anticipated double-digit revenue growth and plans for new product launches in 2026. Additionally, Myriad Genetics announced an exclusive partnership with PathoMx to enhance its oncology offerings with AI-powered testing solutions.
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