NeoGenomics up 21% as BTIG upgrades to Buy after strong Q1 beat
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NeoGenomics (NASDAQ:NEO) added ~21% in the morning hours Tuesday as BTIG upgraded its shares to Buy from Neutral after the cancer-focused lab operator announced a strong topline beat and a guidance raise with its Q1 2023 results.
With a $25 per share target on the stock, the analyst Mark Massaro welcomed the results highlighting the performance of NEO's core lab services business where organic volumes rose 7%, and pricing improved 8%.
"….we expect NEO to start benefiting from its recent launch of RaDaR MRD in the clinic, as well as Neo Comprehensive, in the clinic in Q2," Massaro added, referring to two of the company's recently launched cancer tests.
Impressed by the changes at NEO under its new management, particularly in relation to its growth trajectory, the analyst argues that the company's on track to record profitable growth in the out years.
"We've always liked the precision oncology end market, and now NEO appears to have an excellent new management at the helm," Massaro wrote.