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Genomic Health Upgraded By Canaccord, $44 Per Share Target Predicted


Shares of Genomic Health, Inc. (NASDAQ: GHDX) were trading higher by more than 2.5 percent on Wednesday following a nod of confidence by Mark Massaro of Canaccord Genuity.

Massaro upgraded shares of Genomic Health to Buy from Hold with a price target raised to $44 from a previous $26 following a proprietary survey and interviews with urologists.

Massaro was surprised to discover from his survey that more doctors responded they are aware of Genomic Health's tests over Myriad Genetics, Inc. (NASDAQ: MYGN). The analyst noted this is a "testament" to the company's "solid" marketing and commercial initiatives.

Massaro continued that 56 percent of doctors he surveyed indicated they are likely or highly likely to order Genomic Health's prostate test in 2016, versus only 48 percent for Myriad Generics' test.

Massaro also noted that Genomic Health generated its strongest volume growth in two years during the recent third quarter with a 17 percent year-over-year total volume growth. The analyst said the company is looking to improve on its recent "strong" traction and can achieve "strong growth" even with other competing and "worthy" tests on the market.

Finally, Massaro argued that the risk to reward profile on Genomic Health's stock has "swung to the upside," especially when factoring in a recent Medicare reimbursement decision for its prostate test in October.

Bottom line, despite a recent "big" run of 50 percent in the stock following Genomic Health's third quarter print, the stock is still undervalued at 3.4x and 3.1x 2016 and 2017 revenue.

Latest Ratings for GHDX

Jul 2019Canaccord GenuityDowngradesBuyHold
Jul 2019NeedhamDowngradesStrong BuyHold
Jul 2019BarclaysUpgradesUnderweightEqual-Weight

View More Analyst Ratings for GHDX
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Posted-In: Genomic Health Mark Massaro Prostate Prostate TestsAnalyst Color Health Care Analyst Ratings General

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