Is NewAmsterdam Pharma (NAMS) Still a Buy After Its Strong 2025 Rally?

The biotechnology sector has long been a magnet for high-risk, high-reward investors, and NewAmsterdam Pharma (NAMS) has been no exception in 2025. in its share price over the past three months, driven by regulatory progress for its flagship drug candidate , the stock now faces a critical question: Is the rally justified, or has the market overextended its optimism? This analysis evaluates NAMS through three lenses-valuation, earnings momentum, and analyst consensus-to determine whether the stock remains a compelling buy.

Valuation: A Tale of Two Metrics

NewAmsterdam Pharma's valuation metrics tell a mixed story. On one hand, the company's suggests that the market values NAMS at nearly 120 times its net asset value. This is far above the industry average for U.S. biotech firms, reflecting investor enthusiasm for its pipeline and regulatory milestones. Such a high P/B ratio is not uncommon for speculative biotech stocks, as investors often price in future potential rather than current financials.

On the other hand, the , a direct consequence of NAMS's consistent net losses. For context, the company reported a quarterly loss , missing the Zacks Consensus Estimate by -7.89%. While negative P/E ratios are typical for pre-profit biotechs, they underscore the lack of near-term earnings visibility. The disconnect between the P/B and P/E ratios highlights a key risk: the stock's valuation is heavily reliant on speculative bets rather than proven profitability.

Earnings Momentum: Progress Amidst Persistent Losses

NAMS's Q3 2025 earnings report revealed a net loss of $72 million, . in revenue and a trailing EPS of -$2.05 over four quarters. Such performance raises concerns about the company's ability to generate near-term cash flow, , respectively.

However, the company's cannot be ignored. The European Medicines Agency's acceptance of marketing authorization applications for obicetrapib and its fixed-dose combination with has injected optimism into the stock. These developments position NAMS to potentially capture a significant share of the market, assuming approvals are granted. For now, though, the earnings momentum remains firmly in the red, with analysts projecting a continued loss .

Analyst Consensus: A Divided Outlook

Despite the earnings headwinds, Wall Street analysts remain cautiously optimistic. A consensus rating of "Moderate Buy" . , . For instance, HC Wainwright & Co. set the highest target , while others, such as those cited by TradingView, .

The divergence in analyst views underscores the dual nature of NAMS's appeal. Optimists point to its pipeline potential and regulatory milestones, while skeptics highlight the declining cash reserves in nine months and lack of revenue diversification. The "Moderate Buy" rating, therefore, appears to balance the high-risk, high-reward profile of NAMS with the reality of its current financials.

Conclusion: A Buy for the Long-Term, But With Caution

NewAmsterdam Pharma's 2025 rally has been fueled by regulatory progress and speculative optimism, but the fundamentals remain fragile. The stock's valuation is inflated by its P/B ratio, while earnings momentum continues to lag. Analysts' price targets suggest confidence in the company's long-term potential, but the wide dispersion of opinions indicates a lack of consensus on the timing and magnitude of value realization.

For investors with a high-risk tolerance and a long-term horizon, NAMS could still be a buy-provided they are prepared for volatility and potential near-term losses. However, those seeking near-term profitability or downside protection may want to wait for clearer signs of revenue growth or regulatory approvals. In the end, NAMS remains a bet on the future, not the present.