Analyst Daniel Brennan from TD Cowen maintained a Buy rating on NeoGenomics (NEO – Research Report) and decreased the price target to $12.00 from $17.00.
Daniel Brennan has given his Buy rating due to a combination of factors, despite some recent challenges faced by NeoGenomics. The company’s stock experienced a significant decline following a small sales miss and the transition to a new CEO, which has added some uncertainty. However, Brennan believes that the stock’s drop is excessive given the minor miss and the largely intact fundamentals of the business.
While there are concerns about the company’s guidance and execution, particularly with the CEO transition and the upcoming product launches, Brennan remains optimistic about NeoGenomics’ potential. The company is expected to leverage its strong community channel to drive growth in oncology diagnostics, supported by an expanding test menu and operational efficiencies. Although the guidance for 2025 appears ambitious, the expansion of the salesforce and the launch of new products like the PanTracer Liquid biopsy test are seen as positive developments that could support future growth.