Neogen Corporation (NASDAQ:NEOG) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Analysts maintain a consensus “Hold” rating on Neogen, with three buys, one hold and one sell; the average 12-month price target is $12.67.
• Neogen reported stronger-than-expected fiscal first-quarter results, with revenue up 6.5% year over year to $222.8 million and adjusted EPS of $0.08, while raising its fiscal 2027 revenue and EBITDA outlook.
• FDA-related risk remains a major concern: A warning involving recalled HYCOAT products allegedly linked to fungal contamination and horse deaths could create legal, reputational and financial consequences despite the company’s solid quarterly performance.

Neogen Corporation (NASDAQ:NEOG - Get Free Report) has received a consensus recommendation of "Hold" from the five research firms that are currently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and three have given a buy recommendation to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $12.67.

NEOG has been the topic of several analyst reports. Wall Street Zen raised Neogen from a "buy" rating to a "strong-buy" rating in a research report on Saturday, October 3rd. Guggenheim reissued a "buy" rating and set a $14.00 target price (up from $12.00) on shares of Neogen in a research note on Wednesday, September 30th. Piper Sandler raised shares of Neogen from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $13.00 to $14.00 in a research note on Wednesday, August 26th. Finally, Weiss Ratings upgraded shares of Neogen from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 7th.

Neogen News Summary

Here are the key news stories impacting Neogen this week:

• Positive Sentiment: Better-than-expected fiscal Q1 results: Neogen reported revenue of $222.8 million, up 6.5% year over year and ahead of the $208.2 million consensus estimate. Adjusted EPS of $0.08 exceeded expectations by $0.03, while management raised its fiscal 2027 outlook to approximately $885 million-$890 million in revenue and $181 million-$183 million in adjusted EBITDA. Neogen Q1 Revenue Rises 6.5%; Raises FY27 Outlook
• Positive Sentiment: Ambitious long-term targets: At Investor Day, Neogen outlined a strategy focused on food-safety growth, innovation and operating leverage. The company is targeting roughly 30% adjusted EBITDA margins by fiscal 2031 and plans to expand research and development, supporting the view that recurring food-safety demand can drive sustainable growth. Neogen 2026 Investor Day
• Neutral Sentiment: Analyst and market attention remains elevated: Earnings-call discussions focused on execution, margin expansion and the upcoming Petrifilm product transfer. Broader market weakness caused by higher oil prices and Treasury yields may also be affecting trading, although company-specific developments remain the primary catalyst. Neogen FDA warning report
• Negative Sentiment: FDA warning creates significant risk: The FDA warning concerns HYCOAT, a recalled Neogen Vet product reportedly linked to fungal contamination and at least 20 horse deaths. The issue could lead to legal, reputational and financial consequences and has prompted securities-investigation announcements from law firms, increasing uncertainty despite the strong quarter. Neogen securities investigation notice

Neogen Trading Up 0.3%

Shares of NEOG opened at $11.71 on Friday. The stock has a market capitalization of $2.55 billion, a PE ratio of -46.84, a P/E/G ratio of 4.38 and a beta of 1.79. The company's fifty day moving average is $12.13 and its 200 day moving average is $10.29. 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 has a fifty-two week low of $5.37 and a fifty-two week high of $14.26.

Neogen (NASDAQ:NEOG - Get Free Report) last announced its earnings results on Tuesday, October 6th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.03. Neogen had a negative net margin of 6.35% and a positive return on equity of 3.29%. The firm had revenue of $222.80 million for the quarter, compared to analysts' expectations of $208.18 million. During the same period in the prior year, the company earned $0.04 EPS. The business's revenue was up 6.5% compared to the same quarter last year. Sell-side analysts expect that Neogen will post 0.27 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Neogen

Several institutional investors have recently bought and sold shares of NEOG. Bank of New York Mellon Corp bought a new position in shares of Neogen in the 2nd quarter worth $11,404,000. Bank of America Corp DE bought a new position in Neogen in the second quarter worth about $28,280,000. Sei Investments Co. raised its holdings in Neogen by 69.1% in the first quarter. Sei Investments Co. now owns 230,403 shares of the company's stock worth $2,141,000 after purchasing an additional 94,148 shares in the last quarter. The Manufacturers Life Insurance Company purchased a new stake in shares of Neogen during the second quarter valued at about $956,000. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in shares of Neogen during the first quarter valued at about $2,980,000. 96.73% of the stock is owned by hedge funds and other institutional investors.

About Neogen

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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