Bank of America Securities analyst Michael Ryskin maintained a Hold rating on NeoGenomics (NEO – Research Report) yesterday and set a price target of $12.00.
Michael Ryskin has given his Hold rating due to a combination of factors related to NeoGenomics’ recent financial performance. The company’s first-quarter results showed a slight underperformance in revenue compared to expectations, with total revenues coming in below both Bank of America and Street estimates. Despite this, the bottom-line performance was stronger, as evidenced by an adjusted EPS that exceeded projections. The growth in clinical test volume was notable, yet revenue per test did not meet the anticipated levels, contributing to the mixed results.
Additionally, while NeoGenomics raised its full-year revenue guidance to account for the acquisition of Pathline, the overall sales guidance remained largely unchanged aside from this adjustment. The company’s adjusted EBITDA guidance was also maintained, aligning closely with market expectations. Given these mixed signals, including the stock trading in line with historical averages, Ryskin’s Hold rating reflects a cautious stance, balancing the company’s potential with the current market conditions and performance metrics.
Ryskin covers the Healthcare sector, focusing on stocks such as Illumina, Danaher, and Agilent. According to TipRanks, Ryskin has an average return of -1.6% and a 42.37% success rate on recommended stocks.
In another report released yesterday, Leerink Partners also downgraded the stock to a Hold with a $9.00 price target.