Neogen Corporation’s shares climbed 3.0% in pre-market trading on Tuesday after Piper Sandler upgraded the company’s rating and raised its price target, citing improving operational performance and financial results.
Piper Sandler upgraded Neogen from ‘Neutral’ to ‘above average,’ equivalent to an overweight rating, and increased its price target from $13 to $14. The upgrade follows the company’s fiscal fourth-quarter 2026 results, which exceeded expectations on both earnings and revenue.
Neogen reported adjusted earnings per share of $0.09 for the quarter, surpassing the consensus range of $0.05 to $0.06. Revenue totaled $225.3 million, beating analyst estimates by approximately 6%. The company also provided fiscal year 2027 revenue guidance of $880 million to $885 million, above current market expectations.
Piper Sandler highlighted several operational improvements, including sustained growth in the Food Safety segment, multiple consecutive quarters of rising adjusted EBITDA margins, and positive free cash flow generation. The brokerage also noted the restoration of product availability and a more disciplined commercial structure under a recently restructured executive team.
U.S. stock futures showed limited movement in pre-market trading, with S&P 500 futures slightly lower and Nasdaq-100 futures modestly down. Investor caution persisted ahead of key macroeconomic data, including the July Personal Consumption Expenditures inflation index and Nvidia’s upcoming earnings report.
