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On Friday, Stephens maintained an Equal Weight rating on Myriad Genetics (NASDAQ:MYGN) shares, with a revised price target of $28, up from the previous $21. The adjustment reflects a more optimistic growth outlook for the company. The firm highlighted that the company should prioritize funding growth opportunities, especially considering the expected surge in global LNG supply, projected to increase by approximately 40% over the next five years.
The analyst noted that Myriad Genetics is well-positioned to benefit from a robust project inventory and the scheduled arrival of a newbuild Floating Storage Regasification Unit (FSRU) in the second half of 2026. These factors are seen as key drivers for the company's long-term organic growth potential.
Moreover, the current strength of the company's balance sheet, described as underlevered, potentially allows for competitive moves in acquiring existing LNG infrastructure, which could enhance EBITDA by 2025.
The firm believes that the stock's performance will likely continue to be positively influenced by increased clarity on future growth avenues. The emphasis on funding growth initiatives aligns with the company's strategic focus, rather than increasing the return of capital to shareholders, which the analyst suggests is not the most beneficial course of action at this time.
The analyst's commentary underscores the importance of the company's infrastructure project pipeline and its ability to capitalize on the expanding LNG market. With the anticipated growth in supply, Myriad Genetics appears to be in a solid position to undertake new projects and investments that could drive revenue growth.
In conclusion, the revised price target reflects confidence in Myriad Genetics' growth trajectory and strategic investments, which are expected to yield favorable outcomes for the company's financial performance in the forthcoming years.
In other recent news, Myriad Genetics reported third-quarter revenue figures between $210-212 million, surpassing the Street's expectation of $210 million. The company also reaffirmed its 2024 revenue guidance of $835-845 million.
Leerink Partners increased their price target for Myriad Genetics to $40, maintaining an Outperform rating on the shares. This followed the company's Investor Day, where it outlined key growth drivers and long-term financial goals, including a target to reach over $1 billion in revenue by 2026.
However, JPMorgan reiterated its Underweight rating on Myriad Genetics, maintaining a $20 price target, while BofA Securities held an Underperform rating for the company. Myriad Genetics also announced collaborations with The University of Texas MD Anderson Cancer Center and The University of Rochester Medical Center, focusing on breast cancer molecular residual disease testing research. The company's Precise MRD test is anticipated to launch commercially in 2026.
Despite discontinuing part of its GeneSight study, Wells Fargo listed Myriad Genetics among its high-conviction ideas for sustained growth into 2025. These are the recent developments for Myriad Genetics.
InvestingPro Insights
To complement the analysis provided by Stephens, recent data from InvestingPro offers additional context on Myriad Genetics' (NASDAQ:MYGN) financial position and market performance. The company's market capitalization stands at $2.1 billion, with a revenue of $802.2 million over the last twelve months as of Q2 2024, showing a robust growth of 14.78%. This aligns with the analyst's optimistic growth outlook for the company.
InvestingPro Tips highlight that Myriad Genetics operates with a moderate level of debt, which supports the analyst's observation of an underlevered balance sheet. This financial flexibility could indeed facilitate the company's ability to fund growth opportunities and potentially acquire LNG infrastructure as suggested in the report.
Interestingly, while the stock has experienced a significant 51.08% return over the past year, recent InvestingPro data indicates a 12.84% decline in the past week. This volatility, coupled with the RSI suggesting the stock is in oversold territory, may present opportunities for investors aligned with the analyst's long-term growth thesis.
For readers seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Myriad Genetics, providing a deeper dive into the company's financial health and market position.
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