Neogenomics stock price target raised to $11 from $6.50 at Stephens

Investing.com - Stephens raised its price target on Neogenomics (NASDAQ:NEO), a $1.13 billion market cap oncology diagnostics company, to $11.00 from $6.50 on Tuesday, while maintaining an Overweight rating on the stock. The new target sits well within the analyst range of $6.50 to $14.00.

The price target increase follows a favorable ruling from the District Court for the Middle District of North Carolina in Neogenomics’ intellectual property litigation with NTRA. The court decision grants Neogenomics the ability to broadly commercialize its RaDaR ST product. The market has responded positively, with the stock surging 31% in the past week.

The ruling removes a significant obstacle to the company’s Minimal Residual Disease (MRD) strategy, allowing Neogenomics to enter the high-growth MRD market with a commercially viable product.

Stephens noted that while near-term revenue contribution is likely limited due to pending MolDx coverage and relatively narrow initial indications, the decision expands Neogenomics’ total addressable market and provides an incremental tailwind for longer-term growth.

The firm acknowledged that potential risks remain, including possible appeals or enforcement of additional patents from NTRA, but believes the court decision strengthens Neogenomics’ positioning in oncology and supports a more durable growth profile across its clinical and pharmaceutical businesses.

In other recent news, NeoGenomics has been at the center of several significant developments. A North Carolina district court ruled in favor of NeoGenomics in a patent dispute with Natera, invalidating Natera’s claims due to ineligible subject matter. This legal victory prompted Needham to raise its price target for NeoGenomics from $8 to $14, maintaining a Buy rating. However, BTIG downgraded NeoGenomics from Buy to Neutral, citing concerns about management credibility and product portfolio alignment. Additionally, NeoGenomics recently launched the NEO PanTracer LBx, a blood-based genomic profiling test for advanced solid tumors, which provides results within seven days. Despite these advancements, NeoGenomics faced challenges with its second-quarter 2025 results, where revenue and EBITDA fell short of expectations, leading to a lowered full-year 2025 revenue and EBITDA guidance. Consequently, Needham adjusted its price target down to $8.00. These recent developments highlight a mix of legal victories and operational challenges for NeoGenomics.

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