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Investing.com - Needham raised its price target on Neogenomics (NASDAQ:NEO) to $14.00 from $8.00 on Friday, maintaining a Buy rating following the company’s favorable patent ruling against Natera. Currently trading at $8.87, the stock appears slightly overvalued according to InvestingPro analysis, though analysts’ targets range from $6.50 to $12.00.
The court granted Neogenomics a summary judgment in its RaDaR patent infringement case with Natera, ruling that all of Natera’s asserted claims are invalid for claiming ineligible subject matter. The market has responded positively to this news, with the stock showing a strong 9.16% return over the past week.
With this legal victory, Neogenomics is now free to commercialize its RaDaR ST assay and has already launched the product to biopharma customers while submitting for Medicare MolDX coverage.
Needham believes RaDaR ST could become a significant growth driver for Neogenomics in the long term, citing the multi-billion dollar total available market for MRD (minimal residual disease) testing and the company’s strong distribution channels and physician relationships.
The research firm expects Neogenomics to discuss its broader RaDaR commercialization plans during its third-quarter 2025 earnings call, scheduled for November 11, 2025.
In other recent news, NeoGenomics has been at the center of several significant developments. The company achieved a legal victory when a North Carolina district court ruled in its favor, invalidating all of Natera’s patent claims against it. This decision effectively dismisses Natera’s claims with prejudice and declares the patents in question invalid. Additionally, NeoGenomics has launched a new blood-based cancer profiling test, NEO PanTracer LBx, designed for advanced solid tumors, which provides genomic information in cases where tissue samples are insufficient. The test analyzes over 500 genes and offers results within seven days.
Despite these advancements, NeoGenomics faced some challenges as well. BTIG downgraded the company from Buy to Neutral, expressing concerns about management credibility and product portfolio alignment. Similarly, William Blair downgraded NeoGenomics to Market Perform, citing the time needed to rebuild investor credibility. Meanwhile, Needham lowered its price target for NeoGenomics to $8.00, maintaining a Buy rating, following the company’s second-quarter results that missed revenue and EBITDA expectations, though earnings per share slightly exceeded estimates. Management also adjusted its full-year 2025 revenue and EBITDA guidance downward.
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