The investment bank said it changed its rating because of where the company is in its latest new product adoption cycle with the NovaSeq.
The investment bank previously had a Neutral rating for the company, and it lowered the price target on Genomic Health's stock to $25 from $28.
In a note, Cowen analyst Doug Schenkel said the company has had trouble meeting its targets and suggested it pursue a strategic sale of its nCounter platform.
In a note to investors, the investment bank said the company is going through a transition phase, and has limited potential for near-term upside.
The investment bank, which maintained its $60 price target for the company's stock, said it is looking for signs of revenue acceleration.
The investment bank provided the updates as part of its 2017 outlook on the US life science tools and diagnostics markets.
Revenues rose thank to an increase in the company's human health business, which offset a decline in its environmental health segment.
Mizuho Securities has lowered its rating of the company to Neutral from Buy and cut the price target on its stock nearly in half to $6.50 from $12.
The investment bank said it expects that continued margin expansion will be more challenging than the company's stock price indicates.
The molecular diagnostics company said the number of Atlas instruments placed with customers under commercial agreements rose to 41 from 38 in Q4 2014.
The Guardian reports that the Mammalian Genetics Unit at the Harwell Institute is to close.
Scientific research itself contributes to plastic waste and isn't very sustainable, FiveThirtyEight reports.
Restaurants in the US may soon serve AquaBounty's genetically modified salmon, according to the Associated Press.
In Science this week: three studies from the Ruminant Genome Project, and more.