J.P. Morgan Raises PT on Genomic Health to $18 (GHDX)

J.P. Morgan is out with its report today on Genomic Health GHDX, raising its price target from $17 to $18. In a note to clients, J.P. Morgan writes, "While encouraged at the continued top-line growth, pipeline progress, and commitment to profitability, we continue to be Neutral on GHDX, given the company's preference for reinvestment over operating leverage and profit growth. We apply a 2.2x EV/sales multiple to our 2011 sales estimate to arrive at our December 2011 price target of $18, which we feel adequately discounts the near-term headwinds with the long-term opportunities." Shares of GHDX closed yesterday at $23.32.