Neogen initiated with an Overweight at Wells Fargo

Wells Fargo analyst Timothy Daley initiated coverage of Neogen with an Overweight rating and $22 price target. Neogen is a pure-play food security company serving “discrete long-tail growth markets” across the food supply chain, the analyst tells investors in a research note. The firm recommends Neogen “fresh off a major acquisition” with an “underappreciated self-help margin story.” Wells sees an underappreciated opportunity for the company to accelerate return on invested capital and expand margins to grow EBITDA above peers on high-growth market penetration.