Neogenomics (NEO) PT Lowered to $17 at BTIG
BTIG analyst Mark Massaro lowered the price target on Neogenomics (NASDAQ: NEO) to $17.00 (from $18.00) while maintaining a Buy rating.
The analyst comments "Shares of NEO have pulled back by ~30% following the (still surprising) news last month that the company's turnaround specialist and CEO, Chris Smith, will leave both the CEO seat and the Board, on April 1st, and it didn't help that NEO came in a little light on its biopharma business by $1M in Q4, and that NEO announced on its Q4 call that they will no longer break out its biopharma business. That being said, the fundamentals of NEO's core business today are sound - NEO drove Q4'24 clinical services rev growth of +15% Y/Y, driven by +9% and +5% increases in volume and price, respectively. NEO reiterated its 2025 revenue guide of +11-13% Y/Y and LR top line growth of +12-13% Y/Y. NGS continues to be a key growth lever and is over 30% of its clinical revenue. NEO expects to launch its new NEO Pan Tracer liquid biopsy (therapy selection) blood test panel in 1H'25 which we think may be additive to growth. On the MRD front, RaDaR 1.1 is expected to obtain CLIA validation in 1H'25, though NEO is not factoring MRD into its 2025 guide. NEO's stock has been punished since CEO Chris Smith announced he is leaving; however, fundamentals remain positive and the stock is now trading at 2.2x our 2026 revenue estimate of $818M, below SMID peers at 5.4x. We reiterate our Buy rating and trim our PT to $17."