Myriad Genetics (NASDAQ: MYGN) Stock Upgrade: Piper Sandler Adjusts Rating Amidst Prenatal Business Sale
Key points
- Piper Sandler upgraded Myriad Genetics (NASDAQ: MYGN) to Neutral from Underweight, setting a $5.00 price target.
- Myriad Genetics is selling its prenatal health testing business to Labcorp for $210.00 million in cash.
- This strategic divestiture is expected to improve Myriad Genetics' revenue growth, profitability, and balance sheet.
Myriad Genetics develops genetic tests that help guide health decisions. Piper Sandler upgrades Myriad Genetics to Neutral from Underweight but sets a $5.00 price target. Against a share price of $5.76, that target implies about 13.20% downside. The upgrade signals a less negative view, even though the target remains below the current price.
The rating change comes as Myriad Genetics agrees to sell its prenatal health testing business to Labcorp, another medical testing company. Labcorp will pay $210.00 million in cash, plus the value of the unit’s inventory at closing. The sale includes the Prequel, Foresight, SneakPeek and FirstGene tests.
Labcorp expects the business to generate about $160.00 million in revenue in its first year under its ownership. Revenue is the money a business brings in before expenses. Myriad Genetics’ prenatal tests screen more than 600,000 patients over the past 12 months, as highlighted by Benzinga.
Myriad Genetics says the sale follows a review of its businesses and expects it to improve revenue growth, profitability and its balance sheet. At $5.76, Myriad Genetics is up $1.55, or 36.70%. Its market value is approximately $550.00 million, while trading volume is about 20.80 million shares.
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