- Stephens initiated coverage on Myriad Genetics Inc (NASDAQ: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 issues, and competition resulted in below-market growth.
- In 2020, MYGN announced a transformation plan to streamline its business and accelerate organic growth to 9% – 12%. Thus far, the transformation has gone well, Stephens note.
- Selling prices have stabilized, the OpEx margin has declined, and new products are being developed/launched.
- Stephens says MYGN is still in the early growth acceleration phase, thus making the analyst hesitant about the company’s ability to accelerate/sustain elevated growth amid competition and without investments.
- Stephens says MUGN shares are cheap. If the stock can accelerate growth into the low double-digits and gain investors’ confidence, even minimal multiple expansion could drive upside to shares.
- Price Action: MYGN shares are down 1.97% at $20.41 on the last check Thursday.
Why This Cognex Analyst Is No Longer Bullish
Temporary setbacks in inventory loss, project deferrals in logistics, and FX/component costs headwinds are weighing on Cognex Corporation’s (NASDAQ: CGNX) short term success since it is mostly a book and ship business, according to a JPMorgan analyst.
