Myriad Genetics, Thermo Fisher Two Top Life Science & Diagnostic Picks At Deutsche Bank

Deutsche Bank on Wednesday released its Top Life Science & Diagnostic Picks which included Myriad Genetics Inc. MYGN and Thermo Fisher Scientific Inc. TMO. Myriad Genetics is rated as a Buy with a $52 price target and Thermo Fisher is rated as a Buy with a $160 price target.

Myriad Genetics

Analysts Shawn Bevec and Benjamin Soff wrote, "Myriad is a leading provider of genetic diagnostic tests and key player enabling precision medicine...MYGN maintains a pristine balance sheet with no debt and the company generates solid FCF for ongoing share repurchases or future M&A. With shares trading at a modest discount to peers and our view that FY20 financial targets appear very achievable, we rate MYGN shares Buy."

As a leader in hereditary cancer testing, Deutsche Bank believes Myriad has the necessary drivers in place to leverage its market position and drive revenue growth and margin expansion. Furthermore, with many products in the pipeline, Myriad could have numerous opportunities to introduce a revolutionary product to the market, driving market share and increasing growth in the company's stock price.

Thermo Fisher

Bevec wrote, "Given the breadth of the company's portfolio, TMO is essentially a one-stop shop for its biopharma, research, industrial, and healthcare customers that allows it to penetrate customer accounts much deeper than it otherwise would with a more targeted portfolio...As the largest player in the sector with the broadest scale, the company has among the most diversified portfolio of products that is positioned for stable low to mid single digit organic top line growth and low double-digit EPS growth year in and year out."

There are two key strengths that Deutsche Banks sees for Thermo Fisher's business operations that can drive growth for the company in 2016 and beyond:

• A very diversified business with no product area contributing greater than 3.5 percent to total revenue and no customer accounting for more than 5 percent of revenue.
• A significant mix of highly profitable products, specifically consumables and services. This allows the company to be more insulated from economic shocks because of the wide range of products that can deliver high margins.