UPDATE: Piper Jaffray Upgrades Myriad Genetics to Overweight on Reimbursement Strategy Confidence

Piper Jaffray raised its rating on Myriad Genetics MYGN from Neutral to Overweight and increased its price target from $28 to $35. Piper Jaffray commented, "Management expressed a high level of confidence in their reimbursement strategy, citing multiple layers of stability and a tight range around their median rates (specifically Medicaid and managed care). Additionally, we believe Myriad's longer-term strategy to combat generic BRCAnalysis tests by expanding its panel beyond BRCA 1/2, capturing a larger percentage of heredity cancer has shades of the old, but successful, intellectual property HPV argument. Based on our diligence, management's comments and an updated DCF scenario analysis, we see the risk premium the market currently ascribes as excessive." Myriad Genetics closed at $26.95 on Friday.