On Monday, Piper Sandler adjusted its outlook on Myriad Genetics (NASDAQ:MYGN), increasing the stock's price target to $28 from $23, while sustaining an Overweight rating. The firm's analyst cited revised earnings expectations as the basis for this change.
The firm's forecast for Myriad Genetics' 2024 revenue and earnings per share (EPS) has been updated to $831 million and $0.03, respectively, which is a slight increase from the previous estimate of $824 million in revenue and $0.02 in EPS. This updated projection aligns closely with the consensus of $830 million in revenue and $0.03 in EPS.
Looking ahead to 2025, Piper Sandler now expects Myriad Genetics to generate $901 million in revenue and $0.03 in EPS, a revision from the earlier forecast of $895 million in revenue and $0.24 in EPS. This new estimate is notably higher than the consensus, which anticipates $892 million in revenue and $0.22 in EPS for the same period.
For the year 2026, the firm has also modified its revenue and EPS projections for Myriad Genetics. The new estimates stand at $970 million in revenue and $0.24 in EPS, up from the prior estimates of $964 million in revenue and $0.39 in EPS. This updated outlook compares to a consensus estimate of $950 million in revenue and $0.40 in EPS.
Piper Sandler's updated price target and maintained Overweight rating indicate a positive outlook for Myriad Genetics' stock performance, based on the company's anticipated financial results over the next few years.
InvestingPro Insights
Piper Sandler's optimistic revisions for Myriad Genetics (NASDAQ:MYGN) align with some of the recent performance metrics and InvestingPro Tips for the company. An InvestingPro Tip indicates that analysts have revised their earnings downwards for the upcoming period, which contrasts with the slight increase in earnings per share (EPS) projected by Piper Sandler. Additionally, the stock's significant returns over the last week, month, and three months, with a 27.54%, 30.28%, and 19.52% price total return respectively, underscore the positive momentum referred to in the article.
InvestingPro Data shows that Myriad Genetics has a market capitalization of $2.27 billion and is trading near its 52-week high at 96.42% of that level. Despite not being profitable over the last twelve months, with a negative P/E ratio of -15.69, the company has shown a revenue growth of 11.44% over the same period. This growth may support the revised revenue projections by Piper Sandler.
For readers interested in a deeper analysis, there are additional InvestingPro Tips available, including insights on stock volatility and debt levels. To access these tips and more, visit https://www.investing.com/pro/MYGN and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro Tips available for Myriad Genetics that could provide further context to investors following Piper Sandler's updated outlook.
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