Amphastar Pharmaceuticals Upgraded to Buy by Needham Analyst

Amphastar has been upgraded to Buy from Hold by Needham analyst Serge Belanger, with a $36 price target. The upgrade is based on the company's strong growth prospects and potential for increased demand for its pharmaceutical products. Investors are advised to take advantage of TipRanks Premium to unlock powerful investing tools and expert analyst insights to help make informed investment decisions.

Needham analyst Serge Belanger has upgraded Amphastar Pharmaceuticals (NASDAQ: AMPH) to Buy from Hold, setting a $36 price target. The upgrade is based on the company's strong growth prospects and potential for increased demand for its pharmaceutical products, particularly following the recent FDA approval of its iron sucrose injection product, AMP-002.

AMP-002, an iron sucrose injection product, received FDA approval as an equivalent to Venofer, a product that generated approximately $515 million in sales over the past 12 months. The approval comes with a six-month exclusivity period, though a competing generic product from Viatris also received approval. Despite this, Needham estimates that AMP-002 could generate $80-100 million in sales for Amphastar, targeting approximately two-thirds of the Venofer market, specifically the dialysis setting not controlled by Fresenius.

Belanger cited attractive valuation and the addition of a new top-line contributor that should help Amphastar meet or exceed growth expectations for 2025 and 2026 as key factors in the upgrade decision. Additionally, Amphastar Pharmaceuticals announced strong financial results for the second quarter of 2025, with earnings per share reaching 85 cents, surpassing analyst expectations of 74 cents. The company also reported revenues of $174.4 million, slightly above the forecast of $174.0 million.

Despite these positive developments, Piper Sandler lowered its price target for Amphastar from $30.00 to $25.00, citing competitive headwinds, though it maintained a Neutral rating on the stock. Investors are advised to consider the bigger picture of valuation, business qualities, and the latest earnings when making investment decisions.

References:
[1] https://www.tipranks.com/news/the-fly/needham-upgrades-amphastar-on-valuation-post-amp-002-approval-thefly
[2] https://ca.investing.com/news/analyst-ratings/needham-upgrades-amphastar-pharmaceuticals-stock-to-buy-on-iron-sucrose-approval-93CH-4151936
[3] https://finance.yahoo.com/news/amphastar-pharmaceuticals-nasdaq-amph-misses-085742178.html
[4] https://www.stocktitan.net/news/AMPH/amphastar-pharmaceuticals-bolsters-proprietary-pipeline-through-jx90qtq96xqx.html