NeoGenomics (NEO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Puneet Souda from Leerink Partners downgraded the rating on the stock to a Hold and gave it a $9.00 price target.
Puneet Souda has given his Hold rating due to a combination of factors that suggest a challenging growth outlook for NeoGenomics. Despite the company’s strong position in oncology diagnostics, particularly in heme testing, there are concerns about the feasibility of its growth projections. The revenue guidance for fiscal year 2025 appears overly optimistic, and the anticipated growth from the Pathline acquisition may not provide the expected support, as it is currently diluting average unit prices.
Additionally, the competitive landscape in the NGS solid tumor comprehensive genomic profiling market raises doubts about achieving the projected growth rates. The non-clinical pharma services segment is under pressure, and recent management changes, including the departure of the former CEO, add to the uncertainty. As a result, Souda has adjusted his revenue and EBITDA estimates downward and reduced the price target, leading to a Hold rating.
In another report released on April 14, Bank of America Securities also maintained a Hold rating on the stock with a $12.00 price target.