- Neogen's fiscal fourth quarter was mixed, with supply chain and logistics issues offsetting a modest top-line beat with double-digit revenue growth.
- There will always be unpredictable drivers in the business (outbreaks, mainly), but the core food safety testing and and animal genomics businesses remain very attractive.
- Management is looking to target larger M&A deals, and both food safety and animal health offer large potential addressable market expansion opportunities.
- Neogen has almost never been cheap; the best that can be said about the shares is that the valuations aren't out of line with other food safety/animal health names and the growth runway is intact.
For further details see:
Robust Valuation Leaves Neogen Little Room For Error After Mixed Results