09:52 AM EDT, 09/19/2024 (MT Newswires) -- Myriad Genetics' ( MYGN ) top-line growth objective of 12% after several quarters of "solid execution and an operational turnaround is encouraging," Morgan Stanley said in a note Thursday.

"While growth-adjusted valuation looks fair, we view upside from current levels as contingent on evidence of a sustained growth acceleration into the mid-teens range," the analysts said.

The investment firm started coverage of Myriad with an equal-weight rating and $32 price target.

The genetic testing company operates within three key markets of "oncology, women's health and pharmacogenomics," and each market is said to offer "significant opportunities for further growth with average market penetration across all categories" of less than 40%, Morgan Stanley said.

However, the investment firm said it's waiting for "more evidence of the sustainability of the momentum they are seeing across the portfolio, particularly as the business grows in size, laps key reimbursement wins and runs into tougher [year on year] comps."

"Moreover, [management's] decision to take a top-down portfolio-wide 'shots on goal' view of their revised growth projections [versus] laying out clear price/volume assumptions at the segment level has made MYGN a 'show me' story in that regard," the investment firm said.

Price: 28.91, Change: +0.44, Percent Change: +1.55