• In the past week, several law firms filed securities class action lawsuits against Neogen Corporation and key executives, alleging they made materially misleading statements about the integration of 3M's Food Safety Division and failed to disclose adverse financial impacts such as a US$461 million goodwill impairment and internal control weaknesses.
• This legal action stems from a series of disclosures in 2025 that revealed significant integration challenges, cut guidance, executive changes, and continued pressure on profitability, all of which shaped investor concerns about transparency and future performance for the company.
• We'll assess how allegations of misleading statements about the 3M integration could impact Neogen's investment narrative going forward.

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Neogen Investment Narrative Recap

To own Neogen stock today, you’d need to believe the company can restore credibility and capture value from its food safety portfolio, even as the fallout from the 3M integration weighs on sentiment. The class action lawsuits and latest earnings disappointments mean the smooth completion of this integration now represents both the biggest short-term catalyst and the sharpest risk to the business, as execution missteps increasingly threaten margin recovery and investor confidence.

One relevant announcement came on April 9, 2025: Neogen trimmed its full-year 2025 revenue guidance to US$895 million, directly attributing the cut to persistent integration-related challenges. This dovetailed with the CEO’s departure, adding more uncertainty for those monitoring if integration setbacks will be resolved or compound, leaving the future trajectory of both margins and growth in question.

But while optimism about synergy benefits once fueled the outlook, fresh questions about Neogen’s ability to overcome...

Read the full narrative on Neogen (it's free!)

Neogen's narrative projects $812.9 million revenue and $106.5 million earnings by 2028. This assumes a 3.6% annual revenue decline and a $591.8 million increase in earnings from the current level of -$485.3 million.

Uncover how Neogen's forecasts yield a $7.50 fair value, a 57% upside to its current price.

Exploring Other Perspectives

Members of the Simply Wall St Community have published two fair value estimates for Neogen between US$7.50 and US$14.15 per share. Still, with ongoing integration risks after high-profile legal and financial setbacks, you will find those views sharply diverge on what could drive recovery or continued pressure for the business.

Explore 2 other fair value estimates on Neogen - why the stock might be worth over 2x more than the current price!

Build Your Own Neogen Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• Our free Neogen research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Neogen's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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