NeoGenomics, the Healthcare sector company, was revisited by a Wall Street analyst on July 29. Analyst Puneet Souda from Leerink Partners maintained a Hold rating on the stock and has a $8.00 price target.
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Puneet Souda has given his Hold rating due to a combination of factors impacting NeoGenomics. The company recently announced a significant reduction in its revenue guidance for FY25, which has led to a decrease in investor confidence. The new guidance suggests a lower growth rate than previously anticipated, and management’s commitment to long-term growth targets appears challenging to achieve, especially since part of this growth is expected to come from non-organic sources.
Despite these challenges, there are some positive aspects, such as solid clinical performance and improvements in average unit price. However, the struggles in the non-clinical segment and the delayed launch of Pantracer LBx, which lacks reimbursement, have contributed to the cautious outlook. As a result, Souda has opted to maintain a Hold rating while waiting for more stability in the business before considering a more positive stance.
According to TipRanks, Souda is an analyst with an average return of -9.6% and a 31.94% success rate. Souda covers the Healthcare sector, focusing on stocks such as Quanterix, Bruker, and Exact Sciences.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $8.00 price target.