Neogen Corporation (NEOG, Financial) has reached a definitive agreement to divest its global cleaners and disinfectants division to the Kersia Group for $130 million in cash at the time of closing. The deal, which also includes provisions for contingent consideration, is anticipated to be finalized in the first quarter of fiscal year 2026, pending regulatory approvals.
The company plans to allocate the net proceeds from the sale to repay $100 million drawn from its revolving credit facility. The business segment set for divestiture currently generates approximately $60 million in annual revenue.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Neogen Corp (NEOG, Financial) is $8.97 with a high estimate of $13.00 and a low estimate of $6.40. The average target implies an upside of 104.25% from the current price of $4.39. More detailed estimate data can be found on the Neogen Corp (NEOG) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Neogen Corp's (NEOG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Neogen Corp (NEOG, Financial) in one year is $15.73, suggesting a upside of 258.31% from the current price of $4.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Neogen Corp (NEOG) Summary page.
