Michael Matson, an analyst from Needham, maintained the Buy rating on NeoGenomics (NEO – Research Report). The associated price target was lowered to $18.00.
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Michael Matson has given his Buy rating due to a combination of factors including NeoGenomics’ stable revenue growth, which was slightly over 10% in the last quarter, supported by increases in clinical volume and revenue per test. Despite some mixed results with revenue falling short, the company managed to exceed EBITDA expectations, and management has reaffirmed their revenue and EBITDA guidance for the coming year.
NeoGenomics is benefiting from favorable pricing and growth in next-generation sequencing volumes, contributing to improved gross and EBITDA margins. While there are investor concerns about the slower growth in the latter half of the year and recent changes in leadership, Matson continues to see potential for the company, maintaining the Buy rating albeit with a slightly reduced price target due to existing uncertainties.