Dmitry Vinogradov
- Scotiabank has initiated Myriad Genetics at outperform as it is trading at a discount to other advanced diagnostics companies and the markets it is focused on are under penetrated.
- The firm has a $29 price target (~18% upside based on June 26 close).
- Analyst Sung Ji Nam noted that while the company has undergone a significant transformation over the past few years and the rewards are now being reaped, “we think the company is still in the early stages of maximizing its top-line growth potential as well as achieving sustainable profitability.”
- She added that Myriad’s focus is on molecular diagnostic tests for the oncology, women’s health, and pharmacogenomics sectors, a market worth ~$12.9B, that is less than 40% penetrated on average for each. Also, Myriad “holds the top three positions in six of the seven active product categories, and less than 20% of the market share is concentrated among the top three players across the various markets.”