Truist raises ANI Pharmaceuticals target to $65, maintains hold

Published 21/04/2025, 16:30
Truist raises ANI Pharmaceuticals target to $65, maintains hold

Monday, Truist Securities adjusted their price target on ANI Pharmaceuticals (NASDAQ:ANIP) shares, increasing it to $65 from the previous $62, while keeping a Hold rating on the stock. The company, currently trading at $68.5 with a market capitalization of $1.39 billion, has shown impressive momentum with a 25.2% year-to-date return. This change follows ANI Pharmaceuticals’ strong performance in the fourth quarter of 2024, which saw the company surpass revenue expectations and revise its fiscal year 2025 guidance upwards to a range of $756 million to $776 million.

The revised guidance reflects ANI Pharmaceuticals’ confidence in its growth prospects, particularly in its Cortrophin Gel, generics, and branded products. According to InvestingPro data, the company has demonstrated strong revenue growth of 26.2% over the last twelve months and maintains a robust current ratio of 2.72, indicating solid financial health. Truist Securities’ analyst Gregory Fraser acknowledged the company’s strong fourth-quarter results and its optimistic outlook for the coming fiscal year. Fraser noted, however, that there are several challenges that could affect the company’s ability to meet these targets, including reimbursement pressures for its products Iluvien and Yutiq, uncertainties regarding tariffs on active pharmaceutical ingredients (APIs), and the potential impacts of consolidating the Yutiq label into Iluvien.

Despite these challenges, Fraser believes ANI Pharmaceuticals is relatively shielded from tariff-related risks compared to other generic drug manufacturers, given that all of its manufacturing facilities are located within the United States. While the exact percentage of imported APIs and other materials used in the company’s broad generics portfolio remains unclear, the analyst suggests that the impact on flagship brands like Iluvien could be minimal. This is because brand pricing is more capable of absorbing any incremental costs from inputs.

The Hold rating reflects a cautious optimism, with the price target increase to $65 signaling a recognition of ANI Pharmaceuticals’ improved outlook and its advantageous position in potentially mitigating the impact of tariffs compared to its competitors. The company’s recent financial performance and strategic positioning have been key factors in Truist Securities’ updated assessment.

In other recent news, 3SBio reported a 17% year-over-year increase in revenue to Rmb9.1 billion for fiscal year 2024, alongside a 35% rise in net profit to Rmb2.1 billion. Citi analyst Wanngbin Zhou upgraded 3SBio’s stock from Neutral to Buy, raising the price target to HK$13.00, citing strong annual results and promising product pipeline developments. ANI Pharmaceuticals has launched a generic version of Nitazoxanide Tablets in partnership with Biophore India Pharmaceuticals, with U.S. annual sales estimated at $36.1 million. Additionally, ANI Pharmaceuticals settled a $17.25 million royalty obligation with SWK Funding LLC, aiming to enhance financial flexibility and growth potential. The FDA approved an updated label for ANI’s ILUVIEN to treat chronic non-infectious uveitis, expanding its use beyond diabetic macular edema. Jefferies initiated coverage on ANI Pharmaceuticals with a Buy rating and an $80 price target, highlighting the company’s growth potential in branded rare disease products. These developments indicate strategic moves by both companies to strengthen their market positions and product offerings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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