Why Fulgent Genetics Stock Is Dropping Today
Shares of Fulgent Genetics (NASDAQ: FLGT), a genetics testing provider, were dropping sharply on Friday and were down by 13.9% as of 11:37 a.m. EST, after falling by as much as 17.3% earlier in the day. The company did not report any news that scared off investors, but a Wall Street analyst downgraded its stock, which explains its woes on the market today.
The analyst, Credit Suisse's Erin Wilson Wright, downgraded Fulgent Genetics' stock to underperform from neutral. According to Wright, despite benefiting from COVID-related tailwinds (largely thanks to its coronavirus-testing solutions), the revenue spike the company experienced won't last forever.
The analyst also gave Fulgent a new price target of $40, slightly down from her previous target of $42. Shares of the genetics testing specialist currently go for roughly $61, which means Wright's price target represents a significant downside, and that's after it has already dropped by double digits today.
Source Fool.com
