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On Friday, Jefferies began coverage on ANI Pharmaceuticals (NASDAQ: NASDAQ:ANIP) with a favorable outlook, assigning a Buy rating and setting a price target of $80.00. Currently trading at $61.46 with a market cap of $1.25 billion, the company has attracted positive attention from analysts, with 5 recent upward earnings revisions according to InvestingPro. The firm’s analysts predict continued momentum for the company, driven primarily by its Cortrophin Gel and generic drug offerings. They believe the current setup relative to market expectations is particularly advantageous, especially in the first quarter.
The analysts at Jefferies have pointed out that ANI Pharmaceuticals’ valuation, at 7 times EBITDA, is currently in line with a pure-play generic (gx) multiple. With an EBITDA of $82.35 million and impressive gross profit margins of 59.27%, InvestingPro data suggests the company’s fundamentals support this transition. They argue that the market is undervaluing the company’s shift towards branded rare disease products and the significant impact this transition is having on the company’s growth and margins.
The firm’s coverage notes that key segments of ANI Pharmaceuticals are anticipated to grow faster than expected in 2025, which could lead to a potential for multiple expansion. This potential is further underscored by the expected balance in the company’s portfolio, with a 50/50 mix between branded and generic products.
Jefferies’ initiation of coverage on ANI Pharmaceuticals underscores their confidence in the company’s future performance. Their analysis suggests that the market may not fully appreciate the strategic moves ANI Pharmaceuticals is making, particularly as it relates to the company’s branded rare disease products, which could result in a re-rating of the stock as these initiatives begin to bear fruit.
In other recent news, ANI Pharmaceuticals reported strong fourth-quarter earnings, surpassing analyst expectations. The company achieved an adjusted earnings per share of $1.63, exceeding the estimate of $1.45, and revenue reached $190.6 million, surpassing the consensus estimate of $175.12 million. ANI’s Rare Disease segment was a significant contributor, with revenue more than doubling to $87 million, including $59.4 million from Cortrophin Gel. The company has raised its 2025 revenue guidance to between $756 million and $776 million, above the previous forecast and analyst consensus. In analyst coverage, JPMorgan initiated ANI Pharmaceuticals with an Overweight rating and an $85 price target, highlighting the company’s strong product portfolio. Truist Securities maintained a Hold rating with a $62 price target, noting the company’s strategic rebranding efforts. Leerink Partners increased their price target to $82 and maintained an Outperform rating, emphasizing the potential growth of Cortrophin Gel. These developments highlight ANI Pharmaceuticals’ strategic focus and positive financial outlook.
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