NeoGenomics: Strong Core Business and Growth Catalysts Justify Buy Rating Despite Challenges

BTIG analyst Mark Massaro reiterated a Buy rating on NeoGenomics (NEO – Research Report) today and set a price target of $17.00.

Mark Massaro has given his Buy rating due to a combination of factors, despite some challenges faced by NeoGenomics. The recent announcement of CEO Chris Smith’s departure and a slight miss in the biopharma business for Q4 have led to a significant drop in the company’s stock price. However, Massaro points out that the fundamentals of NeoGenomics’ core business remain strong, with a 15% year-over-year growth in clinical services revenue driven by increases in both volume and price.
Furthermore, NeoGenomics has reiterated its revenue guidance for 2025, projecting continued growth supported by its Next Generation Sequencing (NGS) offerings, which are expected to play a key role in the company’s expansion. The upcoming launch of the NEO Pan Tracer liquid biopsy test and anticipated validation of RaDaR 1.1 are seen as potential growth catalysts. Valuation also appears attractive, with the stock trading below its peers, leading Massaro to maintain a Buy rating, albeit with a reduced price target of $17.

In another report released yesterday, Needham also maintained a Buy rating on the stock with a $18.00 price target.