JPMorgan upgrades Phibro Animal Health stock rating to Overweight on strong results

Published 07/07/2025, 06:38
JPMorgan upgrades Phibro Animal Health stock rating to Overweight on strong results

Investing.com - JPMorgan upgraded Phibro Animal Health Corp. (NASDAQ:PAHC) from Neutral to Overweight on Monday, while raising its price target to $35.00 from $25.00. The stock has shown remarkable momentum, gaining nearly 70% over the past year and currently trading near its 52-week high of $28.49. According to InvestingPro data, the company’s market capitalization stands at $1.13 billion.

The upgrade follows Phibro’s continued strong performance and better-than-expected integration of the ZTS MFA business acquisition, according to the investment bank’s research note.

JPMorgan cited solid execution across Phibro’s Animal Health portfolio over recent quarters, supported by strong customer demand and healthy industry fundamentals.

The firm noted that the ZTS MFA business acquisition is tracking ahead of expectations, with revenues generating higher margins than anticipated, which is supporting improved EPS and EBITDA figures for the company.

Despite PAHC shares having already experienced significant gains this year, JPMorgan sees further upside potential based on the company’s favorable estimates and attractive valuation of approximately 11 times FY 2026 earnings per share.

In other recent news, Phibro Animal Health Corporation reported impressive financial results for Q3 2025, surpassing both earnings and revenue expectations. The company achieved an adjusted diluted EPS of $0.63, exceeding the forecast of $0.53, and reported revenue of $347.8 million, which was significantly higher than the anticipated $309.5 million. This reflects a 32% year-over-year increase in revenue, with the Animal Health segment experiencing a notable 42% growth. The integration of the Zoetis (NYSE:ZTS) MFA portfolio was a major contributor to this sales growth. Additionally, Phibro provided an optimistic outlook for the full year 2025, projecting net sales between $1.260 billion and $1.290 billion, and adjusted EBITDA growth of 59-66%. In terms of analyst activity, there were no specific upgrades or downgrades reported, but the company’s strong performance and guidance have likely influenced investor sentiment positively. The company also highlighted its strategic investments in procurement and supply chain resilience as key factors in its continued success.

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