Myriad Genetics Shares Tank 41% On Analyst Downgrades, Weaker Guidance: Yet Retail Investors Remain Bullish

Shares of Myriad Genetics slumped Wednesday as analysts issued a flurry of downgrades and price target cuts following a weak first quarter and lowered guidance. 

Wells Fargo downgraded the stock to ‘Equal Weight’ from ‘Overweight’, slashing its price target to $6 from $22. 

The stock plunged 41.3% to close at $4.27 on Wednesday.

Analyst Brandon Couillard cited a “noisy” quarterly performance, reduced visibility, and low conviction in the company’s growth and margin outlook through 2026.

Couillard warned that Myriad's revised 2025 guidance still implies a second-half inflection in volume growth, making the stock a “show-me story” that needs stronger execution and strategic clarity before investor sentiment can recover.

Myriad reported Q1 revenue of $196 million, down 3% year-over-year. Adjusted for $16 million in headwinds, revenue grew 5%. 

The company posted a GAAP net loss of $0.1 million, supported by a $29 million tax benefit, while adjusted loss per share came in at $0.03. 

The company now expects full-year adjusted EPS in the range of a loss of $0.02 to a profit of $0.02, and trimmed its revenue outlook to $807–$823 million.

Analyst sentiment turned broadly cautious.

UBS lowered its price target to $7 from $16 while maintaining a ‘Neutral’ rating.

Raymond James trimmed its target to $10 from $19 but kept an ‘Outperform’ rating, citing “somewhat soft” Q1 results and a 4% guidance cut under new CEO Sam Raha. 

Craig-Hallum cut its target to $18 from $29 but reiterated a ‘Buy,’ arguing that while recovery appears more difficult than expected, the stock’s valuation looks disconnected from longer-term potential. 

Wolfe Research also downgraded the stock to ‘Peer Perform.’

Key weaknesses centered on the 20% drop in pharmacogenomics revenue, mainly tied to UnitedHealthcare's cut to GeneSight coverage. 

Oncology remained a bright spot, with hereditary cancer testing volumes in affected populations rising 11% year-over-year.

Despite the cautious analyst tone, Stocktwits sentiment was marked as ‘extremely bullish’ amid ‘extremely high’ message volume. 

One user noted they were considering buying shares, calling the stock “cheap.” 

Another reflected on owning Myriad in the past and questioned the growth outlook after GeneSight brought in just $31 million during the quarter. However, they still described the share price as attractive and cited a decent balance sheet, indicating they had bought after hours.

Shares of Myriad have fallen over 68% so far this year.

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