William Blair Reiterates Market Perform Rating on Neogenomics (NEO) following 'much-needed positive catalyst'

William Blair analyst Andrew Brackmann reiterated a Market Perform rating on Neogenomics (NASDAQ: NEO)

The analyst commented, "NeoGenomics announced on Monday a long-awaited favorable coverage decision from MolDX, which enables Medicare reimbursement for PanTracer LBx.,, This was a much-needed positive catalyst for NeoGenomics, as in the last month, shares have declined 31%, versus the Russell 2000, which is down 6%. While we view Neo’s share price decline as more a function of diagnostics industry dynamics, like concerns over the macro picture driving a rotation out of high-value names, weather limiting first-quarter upside, and questions on the size of the beats to guidance in 2026 versus 2025, we believe this should still result in NEO shares moving modestly higher in trading today. We are not at the point, however, where this update alone is enough to change our rating on shares in the near term. That will likely need to come from upside to numbers in the first part of the year, as well as likely higher volume growth than assumed in the guidance (up low single digits due to impacts from exiting a low-value contract). We see this as possible but await better timing of entry. Shares trade at around 1.5 times 2026 revenue and we rate shares Market Perform."

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 $7.88 yesterday.

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