- Stephen initiated reporting on Myriad Genetics Inc MYGN with an equal weight rating and a price target of $22.
- The analyst writes that the company has been at the forefront of genetic testing for decades. However, in recent years, a lack of innovation, operational problems and competition have led to below-market growth.
- In 2020, MYGN announced a transformation plan to streamline its business and accelerate organic growth to 9% to 12%. So far, the transformation has gone well, notes Stephens.
- Sales prices have stabilized, the OpEx margin has decreased and new products are being developed/launched.
- According to Stephens, MYGN is still in the early stages of growth acceleration, which leaves analysts hesitant about the company’s ability to accelerate/sustain elevated growth amidst competition and without investments.
- Stephens says MUGN stock is cheap. If the stock can accelerate growth into the low double digits and gain investor confidence, even minimal multiple expansion could propel shares higher.
- Price promotion: MYGN shares are down 1.97% on the last check Thursday to $20.41.
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