Myriad Genetics Stock Tumbles After Piper Sandler Double Downgrade

Shares of Myriad Genetics (NASDAQ: MYGN) plunged in pre-market trading on Monday after an analyst at Piper Sandler issued a sweeping double downgrade on the stock. The firm cut its rating from Overweight directly to Underweight and slashed its price target to $2.00 from a previous $5.45.

Analyst Cites Profitability Concerns

The downgrade from Piper Sandler is rooted in the view that Myriad Genetics' current business model is unable to achieve sustainable profitability through either revenue growth or cost-cutting measures alone. According to the firm's analysis, asset divestitures represent the most credible path for the company to unlock shareholder value.

The note highlighted a strategic review conducted in early 2025 that concluded without any asset sales. Piper Sandler interpreted this outcome as a signal of limited interest from potential buyers at acceptable valuations, suggesting the company's challenges are more structural than cyclical.

Downgrade Follows Weak Financial Report

The analyst action follows Myriad's disappointing second-quarter 2026 financial results, which have created a persistent overhang on the stock. Several other investment banks, including Wells Fargo and Bank of America, had already lowered their price targets in the weeks following the report.

Ad

Key figures from Myriad's Q2 update include:

• Q2 2026 Revenue: $190.7 million, a decrease of approximately 10.5% year-over-year and about 7.4% below Wall Street expectations.
• Full-Year 2026 Guidance: Revenue forecast was cut to a midpoint of $780 million, representing a decline of more than 10% from its prior forecast.

Market Impact

Following the downgrade, Myriad's stock was trading down 7.1% at $2.99 in pre-open activity, approaching its 52-week low of $2.74. The selling pressure was compounded by a broader risk-off tone in the market, which tends to disproportionately affect small-cap stocks in the precision medicine sector.