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NEOG: CFO Transition And Alliance Renewal Will Support Future Earnings

NEOG: Rising Profit Margins And New Partnerships Will Drive Future Expansion

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NEOG
AnalystConsensusTarget
Not Invested
Published 27 May 2025

Update shared on 03 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-42.0%
7D
10.0%

Analysts have modestly raised their price target on Neogen by about $0.20 per share, citing a slightly higher assumed discount rate and marginally richer future valuation multiples that together offset minor tweaks to long term growth and margin expectations.

What's in the News

  • Reaffirmed fiscal 2026 earnings guidance, maintaining full-year revenue expectations of $820 million to $840 million (company guidance).
  • Announced the planned transition of Chief Financial Officer responsibilities, with current CFO David Naemura set to resign while remaining through year-end to support onboarding of a successor (company filing).
  • Appointed Bryan Riggsbee, a veteran finance leader in diagnostics and healthcare, as Chief Financial Officer effective November 3, 2025, reporting directly to CEO Mike Nassif (company announcement).
  • Renewed its strategic alliance with the United States Equestrian Federation to continue co-developing educational resources on prevention and treatment protocols for equine botulism, including awareness of its BotVax B vaccine (company announcement).

Valuation Changes

  • Fair Value Estimate remained unchanged at approximately $8.17 per share, reflecting no net change in the model-derived intrinsic value.
  • The discount rate rose slightly from about 8.96 percent to roughly 9.12 percent, indicating a modestly higher required return for equity holders.
  • Revenue growth was effectively unchanged, with long-term assumptions moving fractionally from approximately negative 0.55 percent to negative 0.55 percent.
  • The net profit margin edged down slightly from roughly 13.39 percent to about 13.38 percent, signaling a minimal tempering of long-term profitability expectations.
  • The future P/E multiple rose slightly from around 19.71 times to about 19.81 times, implying a marginally richer valuation applied to projected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.