Neogen (NASDAQ:NEOG) Stock Rating Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Neogen from “strong buy” to “buy,” while the broader analyst consensus remains “hold” with a $12.67 target price.
• Neogen reported better-than-expected quarterly results, with revenue of $222.8 million, up 6.5% year over year, and EPS of $0.08 versus the $0.05 consensus estimate.
• Despite positive operating momentum and long-term margin-growth plans, the company faces potential FDA compliance and litigation risks related to a contaminated veterinary product and an investor investigation.

Neogen (NASDAQ:NEOG - Get Free Report) was downgraded by Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Sunday, Wall Street Zen reports.

Several other equities research analysts also recently commented on the stock. Piper Sandler raised shares of Neogen from a "neutral" rating to an "overweight" rating and upped their target price for the company from $13.00 to $14.00 in a research note on Wednesday, August 26th. Guggenheim reissued a "buy" rating and set a $14.00 price target (up from $12.00) on shares of Neogen in a research report on Wednesday, September 30th. Finally, Weiss Ratings raised shares of Neogen from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $12.67.

Neogen Stock Performance

Shares of Neogen stock opened at $11.85 on Friday. The firm has a fifty day moving average of $12.12 and a two-hundred day moving average of $10.30. The stock has a market capitalization of $2.59 billion, a price-to-earnings ratio of -47.40, a PEG ratio of 4.44 and a beta of 1.79. Neogen has a 52 week low of $5.37 and a 52 week high of $14.26. The company has a debt-to-equity ratio of 0.37, a quick ratio of 2.91 and a current ratio of 3.90.

Neogen (NASDAQ:NEOG - Get Free Report) last announced its quarterly earnings results on Tuesday, October 6th. The company reported $0.08 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.03. The company had revenue of $222.80 million during the quarter, compared to analysts' expectations of $208.18 million. Neogen had a positive return on equity of 3.29% and a negative net margin of 6.35%. Neogen's revenue was up 6.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.04 EPS. As a group, equities research analysts predict that Neogen will post 0.27 EPS for the current year.

Institutional Trading of Neogen

A number of large investors have recently bought and sold shares of NEOG. Nykredit A S bought a new position in Neogen in the second quarter valued at approximately $28,000. Farther Finance Advisors LLC increased its position in shares of Neogen by 76.1% during the third quarter. Farther Finance Advisors LLC now owns 2,184 shares of the company's stock worth $28,000 after acquiring an additional 944 shares in the last quarter. Public Employees Retirement System of Ohio bought a new stake in shares of Neogen during the second quarter worth $34,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Neogen during the second quarter worth $73,000. Finally, Alpine Global Management LLC acquired a new stake in shares of Neogen during the fourth quarter worth $89,000. 96.73% of the stock is owned by institutional investors.

Key Stories Impacting Neogen

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Strong quarterly results and higher guidance: Neogen reported fiscal first-quarter revenue of $222.8 million, up 6.5% year over year and above the $208.2 million consensus estimate. Adjusted earnings of $0.08 per share exceeded expectations by $0.03. Management also raised its fiscal 2027 outlook, supporting the recent increase in the stock. Neogen Q1 Revenue Rises 6.5%; Raises FY27 Outlook
• Positive Sentiment: Encouraging long-term targets: At its 2026 Investor Day, Neogen outlined plans for sustained growth, greater research and development investment, and expansion toward a 30% EBITDA margin by fiscal 2031. The focus on recurring food-safety demand and innovation strengthens the long-term investment thesis, although execution will be important. Neogen Outlines Strategy for Growth, Innovation and Margin Expansion
• Positive Sentiment: Analyst and industry support: Coverage has highlighted Neogen as a medical-products company positioned to benefit from favorable industry trends, while commentary on the earnings call described management as confident about its growth path. Medical Product Stocks Positioned to Ride on Industry Tailwinds
• Neutral Sentiment: Short-interest data is inconsistent: A report described a significant increase in short interest but listed total short interest of zero shares and a 0.0-day short ratio. This suggests no meaningful short-selling pressure, though the data should be treated cautiously.
• Negative Sentiment: FDA and legal overhang: Reports of an FDA warning related to a contaminated veterinary product could create compliance, reputation, or remediation costs. Separately, Pomerantz LLP announced an investigation into potential investor claims, adding headline and litigation risk. Neogen Received an FDA Warning

Neogen Company Profile

Neogen Corporation is a global provider of food safety and animal safety products and services. The company develops diagnostic tests, laboratory products, and related solutions that help customers detect foodborne pathogens, allergens, toxins, residues, and other contaminants throughout the food production process.

Its food safety portfolio includes test kits, culture media, molecular testing systems, sanitation monitoring products, and laboratory supplies used by food manufacturers, processors, retailers, and regulatory organizations.

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