Analyst Michael Matson from Needham reiterated a Buy rating on NeoGenomics and keeping the price target at $14.00.
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Michael Matson has given his Buy rating due to a combination of factors, including NeoGenomics’ strong financial performance in the third quarter of 2025. The company exceeded market expectations with its revenue, EBITDA, and EPS, and maintained its guidance for 2025 revenue and EBITDA. This performance was driven by a notable improvement in organic revenue growth, which increased to approximately 9% in the third quarter, supported by a significant 15% growth in the Clinical segment.
Additionally, NeoGenomics’ Next-Generation Sequencing (NGS) segment demonstrated robust growth at 24%, further contributing to the positive outlook. Despite some challenges, such as a decline in Non-Clinical revenue and a decrease in adjusted gross and EBITDA margins due to the Pathline acquisition, the company has shown resilience. The recent legal victory and the launch of RaDaR ST to biopharma customers, with plans for clinical sales in early 2026, also enhance the company’s growth prospects, reinforcing the Buy rating.