Roth Capital Reiterates Buy On NeoGenomics; Sees 62% Upside For The Stock
In a research report sent to investors today, Roth Capital analyst Debjit Chattopadhyay reiterated a Buy rating on NeoGenomics Inc. (NASDAQ:NEO) with a $7.00 price target, which represents a potential upside of 62% from where the stock is currently trading.
Chattopadhyay wrote, “For 4Q14 we are expecting revenue of $23.4M, largely inline with consensus. Importantly, guidance for FY15 could be ahead of our estimates of $101.3M, despite the obvious headwinds. Going forward we expect: (1) revenue to match volume growth, (2) gross margin expansion, (3) proprietary test launch and, (4) M&A. The recent multiple compression (fallout from Covance’s acquisition by LabCorp) provides an opportunity for long term oriented investors to own one of the best managed oncology lab services at a discount.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Debjit Chattopadhyay has a total average return of 4.5% and a 48.6% success rate. Chattopadhyay has a -5.7% average return when recommending NEO, and is ranked #961 out of 3412 analysts.