Barclays Explains Its Bullish Call On Myriad Genetics - Myriad Genetics (NASDAQ:MYGN)

Barclays provided its analysis of

Myriad Genetics, Inc.MYGN

in a note published Tuesday, in which the analysts outlined both the bear and bull cases of the company.

The firm mentioned the following three aspects as key elements for the bear case:

The pressure from the new competition in HCT
The existence of lower-cost alternatives on the market
The rigorous review from physicians and managed care payors for new products

"The bull case is more complicated, but we continue to believe it's the right call. US healthcare is moving toward more personalized medicine," wrote Barclays. The analysts believe Myriad has the brand, reputation and expertise to be a genomic leader in the field, mentioning that the company possess a deep pipeline of molecular diagnostics.

After meeting with the company's management last week, the analysts reported no major change in fundamentals took place since the September Analyst Day. According to Barclays, the company still believes the hereditary cancer franchise will probably grow at a +3 percent CAGR. "Prolaris is showing both volume and payor momentum. myChoice HRD earned positive validation last week with Tesaro's strong Phase III data. Finally, both Vectra DA and myPath Melanoma continue to make progress on scientific validation which could lead to payor discussions in FY2017," said Barclays.

The bank currently has an Overweight rating on Myriad with a $50 price target.

At time of writing, Myriad was trading up 0.45 percent at $30.91.

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