NeoGenomics price target lowered to $21 from $25 at BTIG

BTIG lowered the firm’s price target on NeoGenomics (NEO) to $21 from $25 and keeps a Buy rating on the shares after the company lost a preliminary injunction order in a patent infringement case brought by Natera (NTRA). The injunction bars NeoGenomics from making, using, selling or offering for sale in the U.S. its RaDaR MRD test, barring certain exceptions, notes the analyst, who said after speaking with the company that they were surprised by the ruling and “will vigorously defend this.” The all-in appeal process could take “years”, not months, and at face value the firm thinks investors may want to remove clinical MRD testing revenue from models for 2024, 2025 and beyond, at least for conservatism, the analyst added. The firm is making no changes to revenue or earnings estimates for either Natera or NeoGenomics, but is applying a lower multiple on its 2025 revenue estimate for NeoGenomics.