Neogenomics stock price target raised to $12 by TD Cowen on new product outlook

Investing.com - TD Cowen raised its price target on Neogenomics (NASDAQ:NEO) to $12.00 from $10.00 on Friday, while maintaining a Buy rating on the cancer diagnostics company. The stock, currently trading at $8.20, has shown strong momentum with a 4.5% gain over the past week, according to InvestingPro data.

The price target increase follows management meetings with TD Cowen, where Neogenomics executives discussed upcoming product launches in liquid biopsy and minimal residual disease (MRD) testing, which are not currently included in the company’s long-term guidance.

According to TD Cowen, MolDX reimbursement remains the final hurdle before these new products can contribute to revenue growth in 2026, with management highlighting the strength of its community channel for introducing new diagnostic products.

The research firm noted that Neogenomics management has adopted a more conservative approach to financial guidance, potentially reducing future earnings volatility.

TD Cowen views Neogenomics’ risk-reward profile as "quite favorable" at the current valuation of less than 2x enterprise value to sales ratio.

In other recent news, NeoGenomics has been at the center of several significant developments. The company received favorable rulings in its patent litigation with Natera, allowing it to broadly commercialize its RaDaR ST product. Both Stephens and Needham have responded positively to this outcome, raising their price targets for NeoGenomics to $11 and $14, respectively, while maintaining an Overweight and Buy rating. However, BTIG downgraded NeoGenomics from Buy to Neutral, citing concerns about management credibility and product portfolio alignment.

Additionally, NeoGenomics has launched the NEO PanTracer LBx, a blood-based genomic profiling test for advanced solid tumors. This new test provides genomic information when tissue samples are insufficient, analyzing over 500 genes with results available within seven days. These developments follow the court’s decision to invalidate all of Natera’s patent claims, marking a significant legal victory for NeoGenomics.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.