In a report released today, Michael Matson from Needham maintained a Buy rating on NeoGenomics, with a price target of $8.00.
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Michael Matson has given his Buy rating due to a combination of factors that include NeoGenomics’ stable organic revenue growth and management’s commitment to maintaining a long-term growth rate target. Despite a recent miss in revenue and EBITDA for the second quarter of 2025, the company achieved a slight beat in EPS compared to consensus expectations. The organic revenue growth remained steady at around 8%, with the Clinical segment showing significant growth, although this was offset by a decline in the Non-Clinical segment.
Matson acknowledges the challenges faced by NeoGenomics, such as the decline in adjusted gross and EBITDA margins, which were impacted by the Pathline acquisition. However, he notes that management is focused on achieving double-digit core growth, supplemented by new products and potential mergers and acquisitions. Although the price target has been adjusted to $8.00 from $8.50 due to revised sales estimates for 2026, the overall outlook remains positive, justifying the Buy rating.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of NEO in relation to earlier this year.