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Investing.com - William Blair downgraded Neogenomics (NASDAQ:NEO) from Outperform to Market Perform on Tuesday, citing concerns about the time needed to rebuild investor credibility. According to InvestingPro data, the company has seen its stock decline by over 60% year-to-date, despite maintaining solid revenue growth of 10.1%.
The downgrade comes as Neogenomics shares fell 20% in Tuesday morning trading to $5.10, reflecting what the research firm described as a "full washout" in the stock. This places the shares near their 52-week low, though InvestingPro analysis suggests the stock is currently undervalued.
William Blair noted that despite being encouraged by the company’s new messaging and commitment to rebuilding investor trust, these efforts typically require more than one quarter of execution to establish a compelling investment thesis beyond valuation alone.
The firm pointed out that Neogenomics currently trades at what it called a "dismal valuation" of 1 times next twelve months (NTM) sales and 14 times NTM EBITDA, both well below historical and peer group averages. The company maintains strong liquidity with a current ratio of 2.05, indicating sufficient assets to cover short-term obligations.
William Blair maintained its long-term positive outlook on the business, suggesting Neogenomics "could be a monster of a stock in 2026" if the company successfully executes its plans and rebuilds trust, potentially driving multiple expansion. Get deeper insights into NEO’s financial health metrics and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, NeoGenomics announced its second-quarter 2025 earnings, reporting an earnings per share (EPS) of $0.03. This figure surpassed analysts’ expectations of $0.02, marking a 50% increase over the forecast. However, the company’s revenue fell short of projections, coming in at $181 million compared to the anticipated $183 million. Despite the EPS beat, the revenue miss was a focal point for investors. These developments have captured the attention of analysts and investors alike. The earnings results are part of the recent developments surrounding NeoGenomics. Market reactions to these results have been mixed, with the revenue shortfall being a significant factor. The company’s financial performance continues to be closely monitored by those in the investment community.
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