Analyst Note
| Aaron Degagne |Narrow-moat Neogen reported fiscal third-quarter earnings that were negatively affected by one-time merger costs and inflationary headwinds; we believe the market’s negative reaction (with shares down over 8%) is somewhat shortsighted, and we maintain our $26 fair value estimate. However, even after the stock’s precipitous decline, Neogen shares still look moderately overvalued in our view.