- NeoGenomics has been plagued by profitability headwinds that have inflected directly to its share price in the last 2 years.
- Its intention to become a "one-stop oncology shop" is well received, although the company has yet to convert on this just yet.
- Shares are richly valued relative to peers, without the sales growth or FCF yield to justify the premium.
- We see a fair value of $50 based on a blend of our modelling and 12x our FY21 sales estimates for NEO, leaving little to be desired in this name.
- Here, we detail the takeouts from NEO's investment debate for the benefit of investors' own reasoning.
For further details see:
NeoGenomics: Profitability Headwinds Compress Valuation, Shares