Can Neogen’s (NEOG) Renewed Equestrian Partnership Strengthen Its Position in Animal Health Solutions?

• Neogen Corporation recently renewed its partnership with the United States Equestrian Federation, continuing the collaboration first launched in April 2024 to provide resources and education for the equine community.
• This agreement highlights Neogen's role as the manufacturer of BotVax B, currently the only USDA-approved vaccine for equine botulism, and signals ongoing efforts to increase awareness and prevention of this life-threatening condition among horse owners.
• We'll explore how Neogen's commitment to equine health education may influence its investment case amid lower earnings expectations.

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Neogen Investment Narrative Recap

To be a Neogen shareholder, you need conviction in the long-term value of its core focus on food and animal safety solutions, even as short-term results remain challenged by operational inefficiencies and end-market headwinds. The renewal of the United States Equestrian Federation partnership underscores leadership in the equine health niche, but this announcement does not materially shift the immediate earnings outlook or address the most pressing risk: slow progress in operational improvements after significant losses and integration hurdles.

Of recent events, the July launch of Neogen’s Listeria Right Now assay stands out. This product directly responds to fast-growing regulatory and customer demand for reliable molecular food safety tests, a key catalyst for future revenue growth, though ongoing execution issues and pressed margins could limit near-term benefits.

By contrast, investors should also be aware of the lingering integration challenges from the 3M Food Safety business and how these issues have yet to be fully...

Read the full narrative on Neogen (it's free!)

Neogen's outlook anticipates $859.1 million in revenue and $107.3 million in earnings by 2028. This scenario assumes a -1.3% annual revenue decline and an earnings increase of about $1.2 billion from current earnings of -$1.1 billion.

Uncover how Neogen's forecasts yield a $7.67 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members assigned Neogen a wide fair value range from US$7.67 to US$14.15, based on two individual valuations. With sluggish operational improvement and end-market weakness as central themes, these various community opinions suggest plenty of perspectives worth considering before forming your own view.

Explore 2 other fair value estimates on Neogen - why the stock might be worth over 2x more than the current price!

Build Your Own Neogen Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Neogen research is our analysis highlighting 1 important warning sign that could impact your investment decision.
• Our free Neogen research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Neogen's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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