Amphastar Pharmaceuticals (AMPH) has quietly slid this month, extending a steady downtrend that now stretches back to the past 3 months. Investors are starting to question whether the selloff has gone too far.
See our latest analysis for Amphastar Pharmaceuticals.
Zooming out, Amphastar’s slide to a recent share price of $25.27 has capped a tough stretch, with year to date share price return sharply negative and the 1 year total shareholder return also firmly in the red. This suggests sentiment has cooled despite the company’s modest revenue and earnings growth.
If Amphastar’s pullback has you reconsidering your sector exposure, this could be a good moment to explore other healthcare stocks that may offer a different balance of growth and resilience.
With Amphastar’s share price down sharply yet still delivering modest growth and trading below analyst targets, investors must now ask: is this a mispriced healthcare compounder, or is the market already discounting all of its future upside?
With Amphastar Pharmaceuticals last closing at $25.27 versus a narrative fair value around $32, the current selloff collides directly with a more optimistic long term view.
The analysts have a consensus price target of $32.0 for Amphastar Pharmaceuticals based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $38.0 and the most bearish reporting a price target of $25.0.
Want to see what kind of steady growth, margin profile, and future earnings multiple could justify that upside from here? The narrative’s assumptions may surprise you.
Result: Fair Value of $32 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Amphastar’s expanding U.S. manufacturing base and diversified pipeline could strengthen margins and reduce reliance on aging generics, which could undermine the undervaluation thesis.
Find out about the key risks to this Amphastar Pharmaceuticals narrative.
If this perspective does not quite align with your own, or you would rather dig into the numbers yourself, you can craft a full narrative in just a few minutes, Do it your way.
A great starting point for your Amphastar Pharmaceuticals research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
Before you move on, give yourself the edge by scanning fresh opportunities on Simply Wall Street’s powerful screener so you are not leaving potential returns on the table.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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