On Tuesday, JPMorgan initiated coverage on Amphastar Pharmaceuticals (NASDAQ:AMPH), assigning an Overweight rating with a December 2024 price target of $60 for the shares.
The firm highlighted Amphastar's well-positioned portfolio in the pharmaceutical market, which includes generic injectable, branded, and over-the-counter (OTC) products. The company's asset collection is described as diverse and attractive, featuring products that are durable and challenging to develop.
Amphastar's acquisition of BAQSIMI from Eli Lilly (NYSE:LLY) last year was noted as a significant factor in expanding the company's presence in the hypoglycemia market. This addition is expected to serve as an important driver for the company's growth. JPMorgan also pointed out the robustness of Amphastar's glucagon product, which is anticipated to maintain its market durability.
The firm's coverage report also mentioned Amphastar's generic injectable portfolio, which is benefiting from ongoing supply disruptions among competitors, leading to more stable pricing trends. Furthermore, with several updates expected in 2024, Amphastar's sizable pipeline is set to contribute to its growth. JPMorgan forecasts high-single-digit revenue growth and double-digit earnings per share (EPS) growth for Amphastar over the next five years.
The recent selloff in Amphastar's stock was referred to as creating a more compelling valuation, suggesting that the current share price presents an attractive entry point for investors. The Overweight rating indicates that JPMorgan sees the company's stock as likely to outperform the average total return of the stocks covered by the firm over the next six to twelve months.
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