On Wednesday, Raymond James exhibited confidence in Myriad Genetics (NASDAQ:MYGN), increasing the company's price target from $25.00 to $28.00 while maintaining an Outperform rating. This adjustment follows Myriad Genetics' full earnings release, which succeeded an earlier pre-announcement in January.
The earnings release presented a mix of developments, yet the core investment thesis for Myriad Genetics remains intact according to Raymond James. The firm acknowledged a $5 million uplift to the 2024 revenue forecast, which they regard as a modest yet significant indicator of early-year confidence, representing a 0.7% incremental growth.
Despite the positive revenue adjustment, Myriad's first EBITDA guidance was set between $20 million and $30 million, falling short of the $40 million market consensus and Raymond James' previous estimate of $41 million.
Still, the anticipated contribution margin from new growth—near 40% at the guidance midpoint—was highlighted as robust, especially considering ongoing investments in several key areas.
Raymond James also observed a conservative approach by Myriad Genetics in estimating market share gains from competitors, particularly in light of Invitae (OTC:NVTAQ)'s Chapter 11 filing. Additional factors contributing to the positive outlook include potential expanded carrier screening guidelines from the American College of Obstetricians and Gynecologists (ACOG) and other less significant growth drivers.
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