Piper Sandler upgraded its rating on Neogen Corporation to Outperform from Neutral, citing sustained operational improvements and stronger-than-expected financial results.
The brokerage raised its price target to $14 from $13, while noting Neogen’s shares were trading at $11.64. The firm highlighted Neogen’s fourth-quarter adjusted earnings per share of $0.09, exceeding Wall Street estimates of $0.05, alongside revenue of $225.3 million against expectations of $212.52 million.
Organic revenue growth reached 4.3% in the quarter, marking the strongest performance in the 2026 fiscal year. Food safety sales, a key segment for Neogen, grew 5.8% on an organic basis. Piper Sandler attributed the improvement to a disciplined commercial strategy, restored product availability and progress in transitioning manufacturing facilities.
The analyst also pointed to sequential gains in adjusted EBITDA margins and positive free cash flow, signaling a shift from stabilization to sustainable, profitable growth. Neogen’s stock has advanced 67% year-to-date and 107% over the past 12 months, reflecting investor confidence in the company’s recovery trajectory.
