Key Highlights:
- Neogen Corporation (NEOG, Financial) revises its Q4 fiscal 2025 outlook amidst gross margin challenges.
- Analysts' price targets suggest a potential upside of up to 67.69%.
- GuruFocus GF Value estimates a potential upside of 208.55%.
Neogen Corporation (NEOG) recently experienced a significant decline in its share price, dropping approximately 14% following a downward revision of its Q4 fiscal 2025 outlook. The primary concern raised was related to anticipated challenges in maintaining robust gross margins. Despite these hurdles, Neogen remains optimistic, forecasting its adjusted EBITDA to reach the high teens. Additionally, the company is planning a second business divestiture amid ongoing sales efforts.
Wall Street Analysts' Insights
In examining the price targets set by three top analysts for Neogen Corp (NEOG, Financial), the average target stands at $8.50. This figure includes a high estimate of $13.00 and a low of $5.00. Based on the current trading price of $5.07, this average target suggests a potential upside of 67.69%. Investors interested in more in-depth price forecasting can explore the full data on the Neogen Corp (NEOG) Forecast page.
Moreover, consensus from four brokerage firms currently rates Neogen Corp (NEOG, Financial) at an average recommendation of 2.0, classifying it as "Outperform." It's important to note that the rating scale ranges from 1 to 5, where a rating of 1 indicates a Strong Buy, and 5 signifies a Sell.
Understanding the GuruFocus GF Value
According to GuruFocus estimates, the GF Value for Neogen Corp (NEOG, Financial) is projected at $15.64 over the next year. This presents an impressive potential upside of 208.55% from the current share price of $5.0688. The GF Value metric is GuruFocus' proprietary calculation of the stock's fair value, derived from past trading multiples, historical business growth, and forecasts of the company's future performance. For additional comprehensive data and analysis, visit the Neogen Corp (NEOG) Summary page.
In summary, despite recent setbacks and market fluctuations, analyst targets and GuruFocus metrics suggest significant potential for Neogen Corp in the future. Investors should weigh these insights while considering the risks and opportunities associated with NEOG's evolving market position.