Benchmark maintains Hold on Neogenomics stock, reiterates price target

Published 31/03/2025, 14:18
Benchmark maintains Hold on Neogenomics stock, reiterates price target

On Monday, Benchmark analyst Bruce Jackson maintained a Hold rating on Neogenomics (NASDAQ: NEO) shares, without altering the price target. The company, currently valued at $1.24 billion, is trading near its 52-week low of $8.98, according to InvestingPro data. Jackson highlighted NeoGenomics (NASDAQ:NEO)’ financial outlook for full-year 2025, projecting total revenue in the range of $735-745 million, marking an increase of 11-13% year-over-year, building on its current revenue growth of 11.65%. The company anticipates a net loss between $85 and $76 million and expects Adjusted EBITDA to be between $55 and $58 million. InvestingPro data shows the company has maintained a healthy current ratio of 1.98, despite recent challenges.

The company’s recent acquisition of Pathline LLC, a CLIA/CAP/NYS-certified laboratory based in New Jersey, was recognized as a strategic move to bolster NeoGenomics’ commercial presence in the Northeast, a region where they were previously under-represented. The acquisition is also expected to enhance service offerings with faster turnaround times, particularly for the core Hematopathology business, and to drive incremental volume for its higher-margin molecular testing.

NeoGenomics has identified several growth drivers for the year 2025, including advancements in Next-Generation Sequencing (NGS), PanTracer Liquid Biopsy, Minimal Residual Disease (MRD) testing, and Oncology Data Services. The company’s strategy includes the launch of one to two major products every 12 to 18 months, alongside several smaller, line extension products annually. This approach is intended to contribute to long-term sales growth.

In his comments, Jackson stated, "We are maintaining our Hold rating on the shares." This reflects a continuation of Benchmark’s existing stance on Neogenomics stock, taking into account the company’s growth prospects and recent business developments. With the next earnings report due on May 6, 2025, investors can access comprehensive analysis and 8 additional key insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, NeoGenomics reported its fourth-quarter 2024 earnings, showing a mixed financial performance. The company exceeded expectations with earnings per share (EPS) of $0.04, surpassing the forecast of $0.03. However, revenue fell short, coming in at $172 million compared to the expected $173.05 million. This revenue miss contributed to a challenging year, with full-year revenue declining 17% to $476 million. Despite this, NeoGenomics achieved a 70% growth in adjusted EBITDA, reaching $64 million for the year.

In terms of company leadership, NeoGenomics announced significant management changes with Warren Stone being appointed as COO and president. Piper Sandler reaffirmed its Overweight rating and maintained a price target of $18.00 for NeoGenomics, expressing confidence in the new management team. They noted that the leadership transition is crucial for maintaining the company’s positive momentum. Additionally, NeoGenomics is focusing on expanding its permanent magnet facilities in Europe, as part of its growth strategy. These developments indicate a focus on stability and growth amid recent challenges.

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