NeoGenomics price target lowered to $18 from $19 at BofA

BofA analyst Derik de Bruin lowered the firm’s price target on NeoGenomics (NEO) to $18 from $19 and keeps a Neutral rating on the shares after a district court issued a preliminary injunction against the company’s tumor-informed RaDaR MRD, or minimal residual disease, assay for cancer recurrence as a result of a lawsuit brought by Natera (NTRA). NeoGenomics intends to appeal the decision and a ruling by mid-2024 could be possible based on timelines for similar cases, the analyst tells investors. BofA lowers its 2024-26 revenue estimates by $5M, $12M, and $20M, respectively, as it assumes some impact to Pharma studies, but notes it had assumed limited clinical contributions.