Wells Fargo analyst Cerena Chen has adjusted Amphastar's (AMPH, Financial) price target, dropping it from $40 to $35, while maintaining an Overweight rating on the stock. According to the firm, the anticipation of two product launches this year remains positive, even with recent Complete Response Letters (CRLs) from the FDA. However, it is expected that any substantial revenue impact from these launches will not materialize until 2026. Despite potential market competition, strong growth in products like Baqsimi and Primatene alleviates Wells Fargo's concerns about pressure from competitors in other areas.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for Amphastar Pharmaceuticals Inc (AMPH, Financial) is $34.75 with a high estimate of $40.00 and a low estimate of $29.00. The average target implies an upside of 42.24% from the current price of $24.43. More detailed estimate data can be found on the Amphastar Pharmaceuticals Inc (AMPH) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Amphastar Pharmaceuticals Inc's (AMPH, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amphastar Pharmaceuticals Inc (AMPH, Financial) in one year is $53.26, suggesting a upside of 118.01% from the current price of $24.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amphastar Pharmaceuticals Inc (AMPH) Summary page.
AMPH Key Business Developments
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amphastar Pharmaceuticals Inc (AMPH, Financial) achieved a 14% increase in annual revenues, reaching $732 million for the 2024 fiscal year.
- The company recorded a solid 5% year-over-year growth in the fourth quarter, with revenues of $186 million.
- Primatene Mist sales reached $102 million, marking a 14% increase from 2023, and surpassed the $100 million annual goal set three years ago.
- A new strategic partnership with Mankind is expected to expand sales reach for the diabetes franchise, particularly for the product Baximmi.
- Amphastar Pharmaceuticals Inc (AMPH) is optimistic about the potential approval of four key products in 2025, which could enhance their product portfolio and market position.
Negative Points
- Glucagon sales declined by 5% due to increased competition and a market shift towards ready-to-use products.
- Epinephrine sales decreased to $18.7 million from $24.6 million in the previous year due to heightened competition.
- Gross margins decreased to 46.5% in the fourth quarter of 2024 from 54% in the same period of 2023, impacted by higher labor and component costs.
- Selling, distribution, and marketing expenses increased by 21% due to expanded efforts for Baximmi.
- The company anticipates flat sales in 2025 due to increased competition for several products, with a return to double-digit growth expected in 2026.
