Roth Capital Remains Bullish on NeoGenomics (NEO) Ahead of 2Q15 Results

Roth Capital reiterates a Buy rating and $7.00 price target on Neogenomics (NASDAQ: NEO) ahead of 2Q15. Analyst Debjit Chattopadhyay anticipates the volume and operational synergies are likely to drive a 400bps increase in gross margin during 2016, which should drive EPS to $0.11/share.

Chattopadhyay commented, "For 2Q15 we anticipate a 21% YoY increase in test volume and core business revenue growth of 11.6%, despite an 11.9% decrease in AR/test associated with FISH-related reimbursement and conservative accounting. Despite uncertainties associated with preliminary decision from the CMS during July we are buyers on weakness as we anticipate volume and operational synergies are likely to drive a 400bps increase in gross margin during 2016, which should drive EPS to $0.11/share with potential upside if FISH-rates are revised higher."

For an analyst ratings summary and ratings history on Neogenomics click here. For more ratings news on Neogenomics click here.

Shares of Neogenomics closed at $5.18 yesterday.

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