Analyst Daniel Brennan from TD Cowen maintained a Buy rating on NeoGenomics and increased the price target to $12.00 from $10.00.
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Daniel Brennan has given his Buy rating due to a combination of factors, including NeoGenomics’ promising new product launches and strategic management changes. The company is poised to benefit from its liquid biopsy and MRD product introductions, which are expected to gain traction once MolDX reimbursement is secured. Management’s emphasis on a more conservative guidance approach and the strength of its community channel further bolster confidence in the company’s growth trajectory.
Despite recent stock declines following a CEO transition and mixed quarterly results, Brennan sees the sell-off as an overreaction. The Clinical segment has consistently performed well, maintaining growth and improving cash flow, which contrasts with the weaker non-Clinical business. The company’s robust commercial relationships and high net promoter scores, along with a strong outlook for NGS growth and new offerings like the PanTracer Liquid, underpin the Buy rating. Brennan’s price target of $12 reflects a significant upside potential from current levels, driven by these strategic initiatives and growth prospects.
In another report released on September 2, Stephens also maintained a Buy rating on the stock with a $11.00 price target.
Based on the recent corporate insider activity of 35 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.