Summary:
- Neogen Corp (NEOG, Financial) plans to divest its cleaners and disinfectants division for $130 million to reduce debt.
- Analysts project a substantial potential upside for NEOG, with price targets indicating an average increase of 98.38%.
- GuruFocus estimates suggest a potential return of 248.01% based on the GF Value metric.
Neogen's Strategic Sale
Neogen Corp (NEOG) has strategically aligned its focus by announcing the sale of its global cleaners and disinfectants segment to Kersia Group. This transaction, valued at $130 million with additional performance-based payments, is aimed at streamlining operations and reducing existing debt by $100 million through its credit facility. The sale is slated for completion in the first quarter of fiscal 2026, marking a pivotal step in Neogen's financial restructuring efforts.
Analyst Price Targets and Projections
Analysts covering Neogen Corp (NEOG, Financial) have released one-year price targets that average $8.97, with forecasts ranging from a high of $13.00 to a low of $6.40. These projections suggest a significant potential upside of 98.38% from the current trading price of $4.52. For a more comprehensive analysis, please visit the Neogen Corp (NEOG) Forecast page.
Brokerage Firm Recommendations
The sentiment among brokerage firms remains optimistic. With an average recommendation score of 2.0, based on inputs from 4 brokerage firms, Neogen Corp (NEOG, Financial) is classified as "Outperform". This rating signifies positive expectations among analysts, with the scale ranging from 1 for "Strong Buy" to 5 for "Sell".
GuruFocus GF Value Estimate
According to GuruFocus' proprietary metrics, the estimated GF Value for Neogen Corp (NEOG, Financial) in the upcoming year is calculated at $15.73. This estimation indicates a potential upside of 248.01% from the current market price of $4.52. The GF Value is a reflection of what Neogen's stock should ideally trade at, based on historical trading multiples, business growth metrics, and projected future performance. For further data analysis, please refer to the Neogen Corp (NEOG) Summary page.
