Neogen Corporation (NEOG) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice.Ā Methodology & Disclosures
Neogen shows improving operational execution with a stable revenue base, cost savings initiatives, and positive industry tailwinds. The stock exhibits positive technical momentum and analyst upgrades. Legal headwinds remain but ongoing margin expansion and upcoming earnings confer cautious near-term upside potential.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ā¢ Liquidity strong ā¢ Profitability weak ā¢ High intangible risk NEOG shows materially improved near-term operating and cash performance (quarterly EBITDA positive, FCF turned positive, and stronger liquidity) but remains unprofitable with heavy intangible assets and significant debt that create material solvency and impairment risks.
Price Behavior
Key Price Behavior Insights: ā¢ Strong uptrend ā¢ Sharp breakout ā¢ Potential overbought Support Level: $7.00 Resistance Level: $9.60 Over the last month NEOG climbed from about $7.00 to $9.37, with a sharp rally after 2026-01-07 showing strong buying momentum but raising short-term overbought risk near resistance around $9.60.
Sentiment & News
Key News Insights: ā¢ Beat-and-raise ā¢ Leadership hires ā¢ Post-earnings volatility Neogen beat Q2 estimates, raised FY26 guidance and sparked a 31% rally amid strategic hires and investor outreach, though a later pullback and a shareholder lawsuit introduce short-term risk.
AI Summary
NEOG has shifted from a ābroken integrationā story to a credible turnaroundādriven by leadership change, a beatāandāraise, positive quarterly FCF and a disclosed $20M runārate savingsāmaking nearāterm execution on PetriFilm/production transfers and sustaining margin recovery the decisive value driver. If management delivers the transfers and savings over the next 2ā4 quarters, deleveraging and a reārating are likely; failure (or impairment/legal hits) would rapidly reverse gains.
Description
Neogen Corporation develops, manufactures and sells products used to detect, mitigate and monitor biological, chemical and sanitary hazards across the food and animal sectors. Its Food Safety business supplies diagnostic test kits and sanitation assays to food and feed producers, processors, grain handlers, dairies, laboratories and related manufacturers to identify pathogens, toxins, residues, allergens and other contaminants, while its Animal Safety business provides veterinary medicines, vaccines, diagnostic tools, disinfectants and genomics services, including drug-residue and toxicology testing for animals. The company was incorporated in 1981 and is headquartered in Lansing, Michigan.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 1 | Jan 8 | NEOG | Neogen Corporation | Neogen shows improving operational execution with a stable revenue base, cost savings initiatives, and positive industry tailwinds. The stock exhibits positive technical momentum and analyst upgrades. Legal headwinds remain but ongoing margin expansion and upcoming earnings confer cautious near-term upside potential. | Closed | +38.9% |