| JMP Securities Upgrades Myriad Genetics, Says 'Revised Guidance Lowers The Bar' | |
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JMP Securities upgraded Myriad Genetics, Inc. (NASDAQ: MYGN) from Market Perform to Market Outperform and established a $50 price target on Wednesday.
Analyst J.T. Haresco III noted that the company reported Q4 results with revenues of $184.4 million which were in line with consensus of $182.9 million.
The company, however, lowered guidance and and expected total revenues of $730-$740 million for 2015 and adjusted diluted earnings per share of $1.50-$1.55.
In Haresco’s view, “the revised guidance lowers the bar ahead of a number of key anticipated catalysts:”
1. Finishing the transition of the myRisk platform with little disruption in market share.
2. Mark Capone moving into the CEO position in FY 2016.
3. Improving gross and operating margin expansion over a multi-year period.
4. Continued 10-15 percent growth of the hereditary cancer testing market.
5. The potential to kick-start top-line growth through reimbursement catalysts in FY 2016.
Haresco concluded that “a majority of the company's current value is tied to the ramp in predictive medicine revenue” and the “the primary risk to an investment in MYGN shares is related to Myriad's ability to retain and grow revenue from this segment over time.”
With the shares trading near 13x CY16E earnings, Haresco believed "that the current valuation offsets the risks [of] moving forward." The firm’s $50 price target was based on 22x its CY16E EPS of $2.29, in line with the group average of 22x.
Myriad Genetics recently traded at $34.08, down 10.6 percent.
Latest Ratings for MYGN
Date | Firm | Action | From | To |
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Feb 2015 | Mizuho Securities | Downgrades | Buy | Neutral | Feb 2015 | Credit Suisse | Downgrades | Neutral | Underperform | Feb 2015 | JMP Securities | Upgrades | Market Perform | Market Outperform |
View More Analyst Ratings for MYGN
View the Latest Analyst Ratings
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Myriad Genetics est une société basée aux Etats-Unis D'Amerique. Myriad Genetics est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 1,7 milliards US$ (1,6 milliards €). La valeur de son action a atteint son plus bas niveau récent le 29 mai 1998 à 10,00 US$, et son plus haut niveau récent le 17 novembre 2000 à 94,06 US$. Myriad Genetics possède 68 090 000 actions en circulation. |