Analyst Note
| Aaron Degagne |We are launching coverage of food and animal safety company Neogen with a $47 fair value estimate, and narrow-moat and stable moat trend ratings. Though Neogen is a well-run, high-quality firm, we think this opinion is shared by the market and fully priced in, and shares have recently been trading near $80, well above even our bull-case fair value estimate of $58. With shares up 20% over the last year, we think investors are generally too bullish about the firm’s prospects, and we would suggest waiting for a more attractive entry point.