Piper Jaffray Transfers Coverage on Myriad Genetics (MYGN) to Overweight; Attractive Opportunity At Present Levels

July 1, 2009 7:30 AM EDT

Piper Jaffray & Co. transfers coverage on Myriad Genetics (Nasdaq: MYGN) to Overweight. Price target increased $1 to $42.

Piper analyst says, "We anticipate Myriad's molecular diagnostics business to remain strong in coming quarters, although our revenue expectations are below consensus for 4Q09 and into F2010/F2011, with outliers skewing the consensus view. We believe potential upside to our estimates exists from better-than-expected adoption/penetration of recently launched assays...Myriad shares declined following their 3Q09 results, where the company delivered bottom-line upside ($0.25 vs. $0.24 consensus), but top-line results missed expectations, due to higher unemployment, which impacted February '09 testing volumes. Myriad pre-announced lower-than-expected 4Q09 results, with the economy continuing to impair their business. We anticipate a recovery in Myriad's business commensurate with a rebound in the economy. MYGN shares currently trade at 18.9x our CY2010 valuation methodology, a discount to their long-term growth rate (30%) and represent an attractive investment opportunity at present levels, in our opinion."

To see more analyst ratings on MYGN Click Here.

Myriad Genetics, Inc. is a healthcare company focused on the development and marketing of molecular diagnostic and therapeutic products.

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