Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Tuesday, Myriad Genetics (NASDAQ:MYGN) shares faced a revision in their price target by analysts at Morgan Stanley (NYSE:MS), now aiming for $16.00, a decrease from the previous $21.00 target. The stock, currently trading at $9.63, has fallen nearly 67% from its 52-week high of $29.30. Despite this adjustment, the firm maintained an Equalweight rating on the stock. According to InvestingPro data, nine analysts have recently revised their earnings expectations downward. The revision came after Myriad Genetics reported their fourth quarter results, which aligned with preliminary figures. The analysts noted that softer volumes were a result of underperformance compared to consensus expectations.
The 2025 guidance from Myriad Genetics did not come as a surprise to the market, considering it had been preannounced. While the company reported a net loss of $127.3 million over the last twelve months, InvestingPro analysis indicates analysts expect a return to profitability in 2025. The guidance includes expectations of a ramp-up in the second half of the year, which is anticipated due to the integration of Electronic Medical (TASE:BLWV) Records (EMR). However, the analysts pointed out several factors contributing to near-term uncertainty for the company, including headwinds from UnitedHealthcare (UNH), a CEO transition, and potential disruptions from EMR workflow changes.
Morgan Stanley’s commentary highlighted that these challenges may affect Myriad Genetics in the short term. Nevertheless, the analysts believe that the company’s ability to achieve sustainable growth acceleration is crucial for a potential re-rating of the stock.
Myriad Genetics, a leader in molecular diagnostics and personalized medicine, is navigating through a period of transition and integration, which investors are closely monitoring. With a beta of 1.79 indicating higher volatility than the broader market, the company’s future performance, especially in terms of growth acceleration, will be significant in determining its valuation and the confidence of its shareholders. For deeper insights into Myriad Genetics’ valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
In other recent news, Myriad Genetics reported its fourth-quarter earnings, revealing revenues of $211 million, which fell short of the expected $213 million but aligned with the preannouncement range of $209-211 million. The company matched analyst expectations with an adjusted earnings per share (EPS) of $0.03. Despite the revenue shortfall, Myriad Genetics exceeded some financial metrics, including adjusted gross margins of 72% and adjusted EBITDA of $11 million. The company reaffirmed its 2025 guidance with projected revenues between $840 million and $860 million, though this is below the previous Street forecast of $877 million.
Additionally, Myriad Genetics announced a leadership change, with CEO Paul Diaz stepping down to join a private equity firm and COO Sam Raha taking over as CEO. Analyst firms JPMorgan and Jefferies both revised their price targets for Myriad Genetics, with JPMorgan lowering the target to $12 while maintaining an Underweight rating, and Jefferies cutting its target to $11, retaining an Underperform rating. These changes reflect concerns over the company’s future performance and challenges with certain products like Prolaris and GeneSight.
The company is navigating a period of strategic reassessment, with ongoing challenges in its Prolaris and GeneSight products. Myriad Genetics aims for double-digit revenue growth in 2026, although this is a downgrade from the previously anticipated 12% growth starting in 2025. The company maintains strong liquidity with $158 million and plans to launch new products in 2026 to drive future growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.