Zacks Investment Research downgraded shares of Myriad Genetics, Inc. (MYGN) from OUTPERFORM to NEUTRAL on April 17, 2013, with a target price of $29.00.
Myriad reported an encouraging second-quarter fiscal 2013, with EPS and revenues sailing past the Zacks Consensus Estimates. On the bright side, BART test gained traction and Myriad progressed with other major pipeline candidates. Besides, the new share repurchase program should boost shareholder value over the long haul. However, the reimbursement price cut for integrated Bracanalysis test and ongoing patent litigation keep us on the sidelines. Both might adversely affect Myriad's future results. Additionally, margin pressure and unfavorable macroeconomic environment remain as major overhangs. Despite healthy growth, the stock is currently plagued with difficulties. Thus, we tread with caution and downgrade our recommendation on the stock to Neutral.
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