Matthew Scalo, analyst at Canaccord Adams, lowered his opinion on GHDX this morning from Buy to Hold. He initiated his Buy rating the end of January this with GHDX at roughly the same price it is today.
I have not read his report....and can only guess his reason is he's afraid of the FDA regulation decision negatively impacted shares near term. Otherwise, his change of opinion makes no sense.
Since he initiated with a Buy rating, GHDX has hit all it's targets and actually raised guidance moving forward. That's right....the guidance they gave to Scalo that he used to justify his Buy opinion...they have just RAISED that guidance....things will be better than they lead him to believe earlier.
Yet this imbecile LOWERS his opinion.
Now, I could understand if the stock was up 30 or 40% from the time of his Buy rating, but the stock is basically flat. Seems to me, as with most sell side analysts, he's got it a$$backwards. He should have had a Hold rating the last 7 months and upgraded to a Buy rating now... after 2 quarters of above expectations growth and progress.
Oh well....like I said...I haven't read his report....maybe he's afraid of a sell off on FDA news....or maybe he's worried about Oncotype's market getting penetrated...as he asked on the conference call....which Kim dismissed.
But I am going to go out on a limb here and challenge this chump....from today's price..call it $22 per share....I will say GHDX is significantly higher in price when he goes back to a Buy rating than it is right now....and I'll go a step further and suggest GHDX has very little downside from this current level.
This is all just fun and games though because in the long run it's the science that matters and GHI's science is fantastic....and the stock price will (eventually) follow.
I'm not done with this dummy....I read where matt lowered his price target on GHDX to $22 from $24.
So in January with the stock at $22 and with a $24 price target, it was a Buy.
8 months later, with the stock still at $22 (in the midst of a bear market) and with the company having RAISED guidance going forward, shrewd ole Matt lowers his price target to $22 and lowers his rating to a Hold.
How can that be? Is this dummy implying he knows more about GHI's future than the management team of GHI? Does he really think they'd raise guidance if the business was stalling or backpedalling?
For what it's worth, GHDX trades in line with the AMEX Biotechnology Index (btk) and since 1992, the strongest 2 quarters for this index are the 3rd and 4th quarters with avg gains of 5.24% and 9.67% respectively.
Maybe Matt was in Wash DC over the weekend at the ASCO Breast Cancer Symposium....maybe he was drinking MammaPrint Kool Aid?
GHI and Oncotype DX are the Big Dogs.
Let's see what the S&P analyst says when he updates GHI for last quarter. S&P currently rate GHDX a Strong Buy with a $28 price target.
I'm just guessing here....but I guess S&P won't lower their price target and opinion when the company beats expectations and raises guidance....just guess, now....but let's see...