These are top 10 stocks traded on the Robinhood UK platform in July
On Wednesday, Morgan Stanley (NYSE:MS) adjusted its outlook on Neogenomics shares (NASDAQ:NEO), reducing the price target to $17.00 from the previous $18.00 while maintaining an Equalweight rating. The stock, currently trading at $12.41, has experienced a sharp 10% decline over the past week. The revision comes after Neogenomics reported a slight miss attributed to an unexpected shortfall in the pharmaceutical budget. InvestingPro analysis reveals several key insights about NEO’s potential, with analyst targets ranging from $16 to $26. Despite this, the company’s 2025 guidance and long-range plan remain aligned with preliminary figures released in January.
The firm’s analyst noted that Neogenomics has a history of consistently outperforming expectations and raising forecasts. However, the recent miss has interrupted this trend. In light of the new developments, the analyst emphasized the importance of Neogenomics’ product pipeline and updated commercial strategy, which appear promising.
The ability of Neogenomics to successfully pivot to next-generation sequencing (NGS) and launch minimal residual disease (MRD) testing under new leadership is seen as critical. The analyst believes that the company’s success in these areas will be a significant determinant of future performance.
Morgan Stanley’s stance on Neogenomics remains neutral, with the Equalweight rating reflecting a balanced risk/reward scenario. The firm acknowledges the potential upsides from the company’s strategic initiatives but also considers the execution risks associated with the transition under new management.
Neogenomics specializes in cancer diagnostics and genetics testing services, and its performance is closely watched by investors interested in the healthcare sector. The company’s efforts to innovate and expand its offerings in the competitive diagnostics market are key factors that could influence its stock performance moving forward.
In other recent news, NeoGenomics reported its fourth-quarter 2024 earnings, which included an earnings per share (EPS) of $0.04, surpassing analysts’ expectations of $0.03. However, the company’s revenue for the quarter was slightly below expectations, at $172 million compared to the anticipated $173.05 million. For the full year, NeoGenomics’ revenue grew 12% to $661 million. Looking forward, the company projects its 2025 revenue to be between $735 million and $745 million, with an EPS forecast of $0.15 to $0.19, which is below the consensus projection of $0.20.
Despite the revenue miss, NeoGenomics’ adjusted EBITDA showed significant improvement, increasing by 1,036% to $40 million for the year. The company also reported a year-over-year revenue growth of 11% for the fourth quarter. Analysts at Needham adjusted their outlook on NeoGenomics, lowering the price target to $18 from $19 but maintaining a Buy rating, indicating confidence in the company’s strategy despite the challenges.
The company has been experiencing growth in clinical volume and revenue per test, attributed to improved pricing strategies and a higher volume of next-generation sequencing (NGS) tests. NeoGenomics’ CEO, Chris Smith, highlighted the company’s strong position for future growth, supported by robust customer demand and upcoming product launches. However, investor concerns persist regarding the company’s EPS guidance for 2025 and the recent change in CEO, which have contributed to a cautious market reaction.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.