Craig-Hallum bulish on Myriad Genetics, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Myriad Genetics (MYGN) with a Buy rating and $29 price target. The firm believes the stock is currently priced as if very little will go right while a lot will go wrong. Specifically, the market is concerned about a potential significant decline in revenue from Myriad’s Prolaris prostate cancer prognostic test in light of uncertainty regarding recent NCCN guidelines, as well as a potential decline in GeneSight revenue if more commercial payors drop coverage like UnitedHealthcare (UNH) recently did. Craig-Hallum does not expect either to happen.