UPDATE: Goldman Sachs Initiates Genomic Health at Neutral on Limited Upside

Goldman Sachs initiated coverage on Genomic Health GHDX with a Neutral rating and a $36 price target. Goldman Sachs commented, "Our thesis is based on (1) growth potential from new product cycles offset by (2) underappreciated market development costs and (3) mounting competition and an uncertain regulatory environment. How we are different: Our proprietary analysis of GHDX's new products and the regulatory landscape suggests these new tests may improve on the standard of care but face material uncertainties that are not yet fully appreciated by the Street." Genomic Health closed at $33.77 on Wednesday.