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On Wednesday, Myriad Genetics (NASDAQ:MYGN) faced a significant reduction in price target from Jefferies, dropping to $5.00 from the previous target of $11.00. Despite this adjustment, the firm has maintained an Underperform rating on the company’s shares. The revision follows Myriad Genetics’ latest financial results, which did not meet sales expectations, falling short by 2%. The stock, currently trading near its 52-week low of $6.94, has experienced a steep 58.86% decline over the past six months, according to InvestingPro data. Additionally, the company has lowered its guidance by approximately $35 million at the midpoint, attributing the decline to underperformance in its Genesight and HCT products.
The company’s earnings per share (EPS) projections also experienced a downturn, moving from an anticipated $0.09 to a breakeven point. This was partly due to a policy change by UnitedHealth Group (NYSE:UNH), which resulted in a $10 million negative impact on Myriad Genetics’ first-quarter performance. Furthermore, the long-range plan (LRP) growth rate decreased once again, now expected to be in the high single-digit to low double-digit range.
Jefferies’ analysis highlighted several factors contributing to the cautious outlook on Myriad Genetics. The company’s valuation may seem low at 0.8 times sales, but concerns have been raised regarding the ongoing CEO transition, the company’s cash flow, and challenges in executing its business strategy. For a deeper understanding of Myriad Genetics’ financial health and growth potential, InvestingPro subscribers can access comprehensive analysis and additional insights through the exclusive Pro Research Report.
Myriad Genetics has been navigating these operational headwinds while attempting to stabilize its financial position and maintain market confidence. Operating with moderate debt levels and currently trading below its Fair Value according to InvestingPro analysis, the lowered price target reflects the culmination of these issues, as observed by Jefferies, and suggests a period of uncertainty for the company as it works through these various challenges.
In other recent news, Myriad Genetics reported first-quarter 2025 revenue of $196 million, which did not meet the forecast of $200.9 million. The company also missed earnings per share expectations, contributing to a challenging financial period. Despite a 3% year-over-year revenue decline, Myriad Genetics saw growth in prenatal and MyRisk oncology test volumes. Additionally, the company expanded its gross margin to 69%, reflecting some operational efficiencies. Myriad Genetics has updated its full-year 2025 revenue guidance to range between $787 million and $823 million, with an adjusted EBITDA target of $19 million to $27 million. The company is focusing on strategic investments in research and development, aiming for high single-digit to low double-digit long-term revenue growth. Analyst firms have not reported any upgrades or downgrades for Myriad Genetics at this time.
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