Goldman Sachs has started covering Amneal Pharmaceuticals (AMRX, Financial) with a Buy rating, setting a price target of $12. The financial institution highlights the ongoing strength in Amneal's diverse portfolio and anticipates potential outperformance compared to current consensus estimates. A significant factor in this optimism is the generics segment, which is projected to be a major contributor to EBITDA growth. This growth is supported by the company’s robust product pipeline featuring new biosimilar and sterile injectable offerings.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Amneal Pharmaceuticals Inc (AMRX, Financial) is $10.00 with a high estimate of $12.00 and a low estimate of $7.00. The average target implies an upside of 39.47% from the current price of $7.17. More detailed estimate data can be found on the Amneal Pharmaceuticals Inc (AMRX) Forecast page.
Based on the consensus recommendation from 4 brokerage firms, Amneal Pharmaceuticals Inc's (AMRX, Financial) average brokerage recommendation is currently 1.8, 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 Amneal Pharmaceuticals Inc (AMRX, Financial) in one year is $2.77, suggesting a downside of 61.37% from the current price of $7.17. 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 Amneal Pharmaceuticals Inc (AMRX) Summary page.
AMRX Key Business Developments
Release Date: May 02, 2025
- Revenue: $695 million, a growth of 5% year-over-year.
- Adjusted EBITDA: $170 million, an increase of 12%.
- Adjusted EPS: $0.21, representing a 50% growth.
- Gross Margin: 43.1%, up 120 basis points year-over-year.
- Affordable Medicines Revenue: $415 million, a growth of 6%.
- Specialty Segment Revenue: $108 million, a growth of 3%.
- Healthcare Revenue: $172 million, a growth of 6%.
- Full Year 2025 Revenue Guidance: $3 billion to $3.1 billion, reflecting 7% to 11% growth.
- Full Year 2025 Adjusted EBITDA Guidance: $650 million to $675 million, reflecting 4% to 8% growth.
- Full Year 2025 Adjusted EPS Guidance: $0.65 to $0.70, reflecting 12% to 21% growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amneal Pharmaceuticals Inc (AMRX, Financial) reported a 5% increase in Q1 revenues, reaching $695 million, and a 12% growth in adjusted EBITDA to $170 million.
- The launch of Crexon for Parkinson's disease has exceeded expectations, with market share surpassing 1% and expected to reach over 3% by the end of the year.
- Amneal Pharmaceuticals Inc (AMRX) has expanded market access for Crexon, doubling US coverage from 30% to 60% of covered lives.
- The company is advancing its partnership with MTSA in the GLP-1 space, with significant progress in developing ultra-long-acting injectable and oral candidates.
- Amneal Pharmaceuticals Inc (AMRX) is well-positioned in the biosimilars market, with plans to launch six biosimilars by 2027, representing a significant growth opportunity.
Negative Points
- Despite the positive growth, the company faces potential challenges from tariffs, which could impact the cost structure and require strategic adjustments.
- There is a risk of FDA delays in approvals or feedback, which could affect the timeline for new product launches.
- The company is still working towards vertical integration in its biosimilar business, which may take time to fully realize.
- Amneal Pharmaceuticals Inc (AMRX) is exposed to potential pricing pressures in its affordable medicines portfolio, which could impact margins.
- The company needs to manage the complexities of expanding its manufacturing capabilities, particularly in the US, to mitigate potential supply chain disruptions.
