NeoGenomics (NEO) is on "more solid footing" even after another change in the chief executive officer role, Needham said in a Tuesday note, citing revenue growth in next-generation sequencing and reimbursement wins for RaDaR MRD.

Current Chief Operating Officer Warren Stone is set to become the company's fifth CEO in the past six years, as he succeeds current CEO Tony Zook on Jan. 4, Needham analysts said.

Further, the analysts said they were "encouraged" by the company's above-consensus Q3 revenue guidance of about $209 million, including year-over-year next-generation sequencing revenue growth of around 28%.

Needham reiterated the company's stock at buy and raised the price target to $22 from $19.

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