Piper Sandler lowers Amphastar Pharmaceuticals stock price target on competitive headwinds

Published 08/08/2025, 12:32
Piper Sandler lowers Amphastar Pharmaceuticals stock price target on competitive headwinds

Investing.com - Piper Sandler lowered its price target on Amphastar Pharmaceuticals (NASDAQ:AMPH) to $25.00 from $30.00 on Friday, while maintaining a Neutral rating on the stock. The stock, currently trading at $21.62, is near its 52-week low of $20.39, having declined over 41% year-to-date.

The price target reduction follows Amphastar’s second-quarter 2025 earnings report, which showed diluted non-GAAP EPS of $0.85 on revenue of $174.4 million, exceeding Street estimates of $0.74 and $174.0 million, respectively. Despite recent market pressure, the company maintains strong fundamentals with a healthy gross profit margin of 50.5% and a robust current ratio of 2.95.

Piper Sandler cited ongoing competitive headwinds as a key concern, particularly related to generics of injectable glucagon and epinephrine products, which continue to pressure the company’s performance.

The research firm also pointed to multi-cycle reviews for complex generics in Amphastar’s pipeline as another challenge, noting a complete response letter on AMP-007, a generic inhalation product, with FDA action on the company’s resubmission expected in the first half of 2026.

Piper Sandler’s price target reduction reflects tempered generics sales estimates and lower gross margins, though the firm indicated that approvals and launches of key product opportunities could lead to a more constructive outlook in the future. According to InvestingPro analysis, the company maintains a "GREAT" financial health score, with additional insights and detailed valuation metrics available in the comprehensive Pro Research Report.

In other recent news, Amphastar Pharmaceuticals reported strong financial results for the second quarter of 2025. The company exceeded analysts’ expectations with an earnings per share (EPS) of 85 cents, compared to the forecasted 74 cents, representing a 14.86% surprise. Amphastar also reported revenues of $174.4 million, slightly surpassing the anticipated $173.95 million. These results indicate a positive performance for the company in this period. Additionally, analysts from various firms have noted these developments, though specific upgrades or downgrades were not mentioned in the reports. Investors are likely to take note of these financial achievements as they assess Amphastar’s performance in the market. These recent developments highlight the company’s ability to outperform expectations.

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