BTIG Believes NeoGenomics (NASDAQ: NEO) Won’t Stop Here

By Jason Carr

In a report released today, Sean Lavin from BTIG maintained a Buy rating on NeoGenomics (NASDAQ: NEO), with a price target of $15. The company’s shares closed yesterday at $13.47, close to its 52-week high of $13.61.

Lavin noted:

“Raising Our PT Earlier this week, we hosted investor meetings with Chairman and CEO Bill Bonello. The general tone was upbeat with majority of the discussions focused on the oncology market opportunity, competitive landscape given recent M&A and use of cash. We felt the overarching theme was the breadth of NEO’s testing capabilities being a competitive differentiator particularly on the clinical trial side. The recently announced agreement with PPD (Private) to be the chief oncology provider would be upside to our current estimates. We are increasing our target EV/sales multiple and PT to $15 (from $11) on increased confidence in Pharma Services, and continued market share capture of clinical testing. Additionally, as NEO moves upstream into higher-end testing, we feel its multiple should more closely match those of specialty cancer testing peers.”

According to TipRanks.com, Lavin is a 5-star analyst with an average return of 17.2% and a 65.6% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tactile Systems Technology, and Obalon Therapeutics Inc.

NeoGenomics has an analyst consensus of Moderate Buy, with a price target consensus of $13.

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Based on NeoGenomics’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $644K. In comparison, last year the company had a GAAP net loss of $654K.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. Last month, Jennifer Balliet, the VP and Chief Culture Officer of NEO sold 65,000 shares for a total of $758,100.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

NeoGenomics, Inc. provides cancer diagnostics and pharma services. It operates through a network of cancer focused testing laboratories to provide genetic and molecular testing services.