Neogen: Starting 2026 With A Bang

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryNeogen has shown early signs of recovery after years of underperformance following the value-destructive 3M Food Safety acquisition.Recent divestments, cost-cutting, and improved core sales growth have led to raised full-year guidance and a notable EBITDA margin rebound.Despite a sharp share price rally and improved outlook, NEOG's leverage remains elevated at 3.7x, and earnings are still modest.I remain constructive but more cautious, holding shares while monitoring for overvaluation if the rally continues into the lower teens.Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More » onuma Inthapong/E+ via Getty Images In October I concluded that Neogen (NEOG), itself being a food safety play, was still not a safety play itself, at least for investors. Following a well-documented and incredibly value-destructive 3M Food Safety acquisition/merger, the business has suffered from a weak performance andThis article was written byThe Value Investor27.5K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NEOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.