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UPDATE: Credit Suisse Downgrades Myriad Genetics on Unclear Growth Potential

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In a report published Monday, Credit Suisse analyst Vamil Divan downgraded the rating on Myriad Genetics (NASDAQ: MYGN) from Neutral to Underperform, and lowered the price target from $28.00 to $20.00.

In the report, Credit Suisse noted, “We downgrade MYGN to Underperform (from Neutral) and lower our target price to $20 (from $28). Our review of the legal, scientific and pricing issues surrounding MYGN's Integrated BRACAnalysis test leaves us increasingly concerned about the company's growth prospects. We believe it is unlikely that MYGN will be able to secure a preliminary injunction (PI) removing potential competitors from the market in the coming weeks and, as a result, we see MYGN losing market share and pricing power as we move into 2014 and beyond. We lower our sales and EPS estimates for FY 2014 and beyond. Our $20 target price is probability-weighted based on an 80% likelihood the company does not obtain a PI (leading to an $18 valuation) and a 20% likelihood that it does (leading to a $30 valuation).”

Myriad Genetics closed on Friday at $24.99.

Latest Ratings for MYGN

DateFirmActionFromTo
Aug 2014Credit SuisseMaintainsNeutral
Jun 2014MacquarieMaintainsNeutral
May 2014Credit SuisseMaintainsNeutral

View More Analyst Ratings for MYGN
View the Latest Analyst Ratings

Posted-In: Credit Suisse Vamil DivanAnalyst Color Downgrades Analyst Ratings

 

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