02/09/11 12:53 pm ET ... S&P LOWERS OPINION
ON SHARES OF GENOMIC HEALTH TO HOLD
FROM BUY (GHDX 22.1***): Q4 EPS of $0.06, vs.
a loss of $0.01, is $0.02 ahead of our est. Sales
rose 19% on solid rise in Oncotype DX breast
cancer test with robust int'l sales, and limited
sales of recently introduced Oncotype DX colon
cancer test.We think GHDX is making good
progress for reimbursement. GHDX guides '11
sales of $200-$210M (12-18% growth) and EPS
of $0.10-$0.17 as profit will be limited by significant
investment in int'l expansion and product
development, including next-generation sequencing.
We are lowering our '11 EPS est
$0.27 to $0.17 and our target price $4 to $24 on
revised DCF.