Neogen Corporation (NEOG): A Bull Case Theory 

We came across a bullish thesis on Neogen Corporation on Cornerstone Value’s Substack. In this article, we will summarize the bulls’ thesis on NEOG. Neogen Corporation’s share was trading at $10.22 as of January 30th. NEOG’s trailing and forward P/E were 822.50 and 16.00 respectively according to Yahoo Finance.

Neogen Corporation develops, manufactures, and markets various products and services for food and animal safety in the United States and internationally.  Neogen’s 2Q 2026 results marked a clear inflection point, triggering a roughly 30% rally and signaling that a long-running self-inflicted downturn may finally be stabilizing. After significant volatility since mid-2025, the quarter underscored the impact of new CEO Mike Nassif, whose operationally focused leadership and rapid executive team refresh are beginning to translate into measurable improvements.

The company delivered core organic revenue growth of 2.9%, materially ahead of expectations, alongside strong sequential adjusted EBITDA expansion and, notably, a rare upward revision to full-year guidance. Management’s outlook appears deliberately conservative, implying margin strength into the second half and leaving room for further upside as execution improves.

The turnaround thesis rests on Nassif’s “back-to-basics” playbook, informed by his prior success at Siemens Healthineers, where disciplined operational fixes, sales-force restructuring, and tighter processes reversed margin erosion and market-share losses. Neogen shows similar early signs of recovery, including revitalized sales execution, improving manufacturing discipline, easing Sample Collection headwinds, and early margin stabilization. The company remains a market-leading food safety platform with strong brand equity, and prior underperformance is increasingly attributed to weak execution rather than structural demand issues.

While near-term catalysts have thinned, the story is transitioning into a more traditional, operations-driven turnaround. Remaining self-help levers include a recovering Genomics business, improving cattle herd dynamics, potential divestments to reduce leverage, and a declining capital intensity profile as merger-related investments roll off. A key risk remains the in-house Petrifilm production ramp, which management indicates is on track, though execution over the next few quarters will be critical. Overall, despite a sharp share-price recovery, the quarter suggests durable progress, improving free cash flow prospects, and a credible path toward sustained growth under new leadership.

Previously, we covered a bullish thesis on Thermo Fisher Scientific Inc. (TMO) by Kontra in October 2024, which highlighted the company’s position as a quality compounder with durable long-term growth, a diversified life sciences portfolio, and consistent innovation driving compounding shareholder returns. TMO’s stock price has depreciated by approximately 3.83% since our coverage. Cornerstone Value shares a similar view, emphasizing operational turnaround, leadership-driven stabilization, and recovery from past underperformance at Neogen Corporation (NEOG).

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Disclosure: None.