Neogenomics started Overweight at Stephens

|By:, SA News Editor

"The company is poised to continue its recent robust growth trends via share gains, menu expansion, increased direct sales efforts, and potential M&A activity," says analyst Drew Jones, initiating Neogenomics (NEO +1.1%) with a Buy and $6 price target. "Additionally, NEO will also begin to show meaningful penetration of the CRO opportunity (to date, 5% of revenues) through its new relationship with Covance."

"Management has proved its mettle," he adds, noting NEO is the rare company to have had multiple 5% negative revenue hits yet still continue to show top-line growth and margin expansion.