Piper Sandler cuts Myriad Genetics stock rating on profit concerns

Investing.com reports that Piper Sandler has revised its rating for Myriad Genetics (MYGN) stock, marking it as Underweight from Overweight and reducing its price target to $2.00 from $5.45. The stock's performance has been dismal, falling 47.6% year-to-date and currently trading at $3.22 with a market cap of $308 million. The downgrade stems from Piper Sandler's belief that Myriad Genetics' current business model lacks the potential to achieve profitability through either growth or cost cutting.

The investment firm noted that the company's strategic review in the first quarter of fiscal 2025 yielded no divestitures, indicating limited interest in several business segments at reasonable valuations. Myriad Genetics' fiscal 2026 second quarter results showed a negative EBITDA of $40.3 million and a loss per share of $1.20, suggesting that the challenges are not short-term but rather structural.

Eight analysts have adjusted their earnings estimates downward for the upcoming period, and no profitability is expected for the year. Despite these issues, InvestingPro data suggests the stock may still be undervalued. To gain a deeper insight into Myriad Genetics' financial situation, readers can access the full Pro Research Report.