Piper Sandler downgraded Myriad Genetics to Underweight from Overweight and cut its price target to $2.00 from $5.45, sending shares down 7.1% to $2.99. The brokerage said the company cannot grow or cut its way to profitability, leaving asset divestiture as the most credible path to value.
Myriad Genetics shares fell 7.1% to $2.99 in pre-market trading after Piper Sandler cut the genetic-testing company to Underweight from Overweight.
Piper Sandler said it does not believe Myriad's current business model can grow or cut its way to profitability, leaving asset divestiture as the most credible path to shareholder value.
The downgrade follows second-quarter results in which revenue fell 10.5% year over year to $190.7 million, about 7.4% below the $206 million Wall Street consensus. Myriad posted an adjusted loss of 25 cents a share, wider than the 6-cent loss analysts expected, and cut its full-year 2026 revenue guidance to a midpoint of $780 million, more than 10% below its prior forecast.
Piper Sandler also pointed to a strategic review Myriad ran in early 2025 that ended without any asset sales, reading the outcome as limited buyer interest at acceptable valuations. The company posted negative EBITDA of $40.3 million and a loss per share of $1.20 over the trailing 12 months.
The downgrade is the latest in a string of target cuts. Wells Fargo, Bank of America, TD Cowen and Stephens have all reduced their price targets since the second-quarter report, and eight analysts have revised earnings estimates lower for the coming period.
At $2.99, Myriad shares traded above their 52-week low of $2.74 and below their high of $8.59. The stock has fallen 47.6% year to date, giving the company a market value of about $308 million. Myriad was removed from the S&P SmallCap 600 index in March.
The decline came as broader U.S. equity markets also traded lower, with the Nasdaq down 0.9% and the S&P 500 and Dow Jones each off 0.5%.
The downgrade shows Wall Street sees little near-term path to profitability for Myriad absent a divestiture. Investors will watch for any strategic update from management on asset sales or cost actions in coming quarters.
This article is for informational purposes only and does not constitute investment advice.
