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NEOG: Future CFO Transition And Guidance Stability Will Support Measured Outlook

Declining Demand And Integration Woes Will Dampen Prospects

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NEOG
AnalystLowTarget
Not Invested
Published 04 Sep 2025

Update shared on 17 Dec 2025

Fair value Increased 30%
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AnalystLowTarget's Fair Value
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1Y
-41.0%
7D
0.7%

Analysts have raised their price target on Neogen from approximately $5.00 to $6.50 per share, citing a slightly lower discount rate, modestly improved revenue trajectory, better profit margin expectations, and a willingness to assign a higher future P/E multiple.

What's in the News

  • Neogen appointed Bryan Riggsbee as Chief Financial Officer effective November 3, 2025, with outgoing CFO David Naemura supporting the transition through year end. The appointment brings deep diagnostics and healthcare finance experience to the company (Key Developments).
  • The company reaffirmed its fiscal 2026 earnings guidance, maintaining its revenue outlook in the range of $820 million to $840 million (Key Developments).
  • Neogen renewed its strategic alliance with the United States Equestrian Federation to continue providing education and tools on preventing and treating equine botulism, including promotion of its BotVax B vaccine, the only USDA approved vaccine for botulism Type B in horses (Key Developments).

Valuation Changes

  • Fair Value: increased from $5.00 to $6.50 per share, representing a moderate upward revision to the intrinsic value estimate.
  • Discount Rate: reduced slightly from 9.09 percent to approximately 8.88 percent, reflecting a modestly lower perceived risk profile.
  • Revenue Growth: the projected long term decline has eased, with the rate improving from approximately minus 1.49 percent to minus 0.98 percent.
  • Net Profit Margin: the expected margin has risen slightly from about 12.49 percent to 12.91 percent.
  • Future P/E: the target forward valuation multiple has increased from roughly 13.25x to 16.45x, indicating a higher assumed market valuation for future earnings.

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