The following excerpts explain why Zacks senior healthcare industry analyst Grant Zeng, CFA issued a Hold rating to Genomic Health, Inc. (GHDX), the biotech company:

'Genomic Health, Inc. is an oncology-based biotech company focused on the development and commercialization of genomic-based clinical diagnostic tests for cancer that allow physicians and patients to make individualized treatment decisions. We are optimistic of its product Oncotype DX, which is used for early-stage breast cancer patients to predict the likelihood of cancer recurrence.

'However, a thin pipeline is our chief concern for future growth. The company relies heavily on Oncotype DX for both short-term and long-term growth. Another product for colon cancer testing is still a few years way from hitting the market. We would like to gain more visibility on how Genomic Health diversifies its product offerings and how it expands internationally before we become bullish on the shares.

'Currently, the company sells Oncotype DX in Israel under a testing and services agreement with Teva Pharmaceutical Industries, Ltd. (TEVA) and in Japan under an agreement with SLR, Inc. Recently, the company signed an agreement with Medical Solutions plc. to distribute the product in the U.K. We maintain our Hold rating on the stock with a price target of $21.50, as we believe the company's shares are fairly valued at the current level. We arrive at our target price $21.50 per share by using a P/S (price-to-sales) multiple of 9x our 2007 sales number of $62.1 million.'