Zacks Investment Research downgraded shares of Genomic Health, Inc. (GHDX) from OUTPERFORM to NEUTRAL on August 17, 2012, with a target price of $38.00.
Genomic Health reported EPS of $0.06 in the second quarter of 2012, way above the Zacks Consensus Estimate of loss of $0.02. The company recorded a robust increase in Oncotype DX tests delivered on the back of deeper penetration in new markets. Besides, progress is being made on the colon cancer test with positive reimbursement decisions and favorable study data. Moreover, Genomic is focusing on the international market that is recording significant growth. We are also encouraged by the focus on sequencing. However, challenges remain in the form of higher operating expenses to support various initiatives and substantial investments required to fund InVitae. Consequently, we revert to our Neutral' recommendation.
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