B.Riley FBR analyst David Buck maintained a Buy rating on Amneal Pharmaceuticals Inc (NYSE: AMRX) yesterday and set a price target of $26. The company’s shares opened today at $24.15, close to its 52-week high of $24.43.
Buck observed:
“the company announced a ten-year distribution agreement for thyroid replacement drug levothyroxine (levo) effective March 22, 2019. Amneal is set to replace Lannett Company (LCI) as distributor for privately held Jerome Stevens Pharmaceuticals (JSP) as family JSP owners sought better terms for its semi-exclusive levothyroxine generic. Per LCI’s conference call August 20th, the drug is annualizing at $200M per quarter; however, this number could dip on new competitive entrants. Additionally, we expect margin for this drug to be well below Amneal’s adjusted gross margin for generics, which was a pro forma ~48.4% for 2Q18 including combined Amneal/Impax.”
According to TipRanks.com, Buck is a 4-star analyst with an average return of 12.8% and a 71.6% success rate. Buck covers the Healthcare sector, focusing on stocks such as Corcept Therapeutics Inc, Spectrum Pharmaceuticals, and Supernus Pharmaceuticals.
Currently, the analyst consensus on Amneal Pharmaceuticals Inc is a Moderate Buy with an average price target of $25.17, implying a 4.2% upside from current levels. In a report issued on August 13, RBC Capital also upgraded the stock to Buy with a $27 price target.
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The company has a one-year high of $24.43 and a one-year low of $13.47. Currently, Amneal Pharmaceuticals Inc has an average volume of 1.09M.
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