William Blair analyst Brandon Vazquez has maintained their bullish stance on NEOG stock, giving a Buy rating on April 10.
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Brandon Vazquez has given his Buy rating due to a combination of factors that highlight Neogen’s promising outlook. The recent visit to Neogen’s headquarters and its new facility in Lansing, Michigan, provided insights into the company’s operational capabilities and leadership strength. The progress of the new facility, particularly the Petrifilm line, is on schedule, and the management team, led by experienced leaders, appears well-equipped to handle the integration efforts.
Furthermore, Vazquez notes that Neogen’s current stock valuation presents an attractive risk/reward profile, with most integration challenges nearing completion. Although there are potential risks such as tariffs and macroeconomic uncertainties, the stock’s low valuation seems to account for these, while the potential for improved execution offers significant upside. Upcoming catalysts, such as divestitures to enhance margins and the normalization of capital expenditures, are expected to drive profitability and potentially reset market sentiment, making the stock an appealing investment opportunity.
According to TipRanks, Vazquez is a 2-star analyst with an average return of -2.8% and a 28.57% success rate. Vazquez covers the Healthcare sector, focusing on stocks such as Neogen, PROCEPT BioRobotics, and Henry Schein.
In another report released on April 10, Guggenheim also reiterated a Buy rating on the stock with a $13.00 price target.