Roth Capital Reiterates Buy On ANI Pharmaceuticals As Shares Have Come Under Pressure


In a research report issued today, Roth Capital analyst Scott Henry reiterated a Buy rating on ANI Pharmaceuticals (NASDAQ:ANIP) with a $40 price target, as the share price has now declined ~30% from yearly highs. That said, the analyst believes that fundamentals remain strong.

The following bullets contain some highlights from the report:

  • With EEMT share possibly reaching 40% as opposed to our targeted bottom of 50%, investors may question whether this puts the company’s 2014 revenue guidance at risk. We believe that the 2014 outlook is not at risk. We believe that our EEMT revenue forecast has conservative assumptions for pricing that can make up for moderately greater than expected near-term market share loss.
  • We believe that Amneal has limited competitive supply to EEMT, and that Amneal’s higher than expected current market share could deplete this supply faster than expected (and reduce the duration of this competition).
  • Recent acquisitions (at great prices in our opinion) have widened the revenue base for ANIP away from unapproved products (EEMT). We target Vancocin and Lithobid adding $10+ million of annual revenues on top of the current ~$45 million base.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Scott Henry has a total average return of 19.8% and a 56.0% success rate. Henry has a -12.9% average return when recommending ANIP, and is ranked #179 out of 3274 analysts.

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