What is the market’s view of ANI Pharmaceuticals’ future operating performance as reflected in the current price of $69? Over the next 6 years, ANI Pharmaceuticals shares will need to reach $116 to achieve average annual stock market performance of 9.0%. Upper quartile performance will require a $136 ANI Pharmaceuticals stock price by 2028.
Executive Summary
- Price Target Research identifies ANI Pharmaceuticals as having: high expected growth, high financial strength, average profitability, and stability. A big positive influence on ANI Pharmaceuticals’ valuation is its superior Growth.
- High valuation, leading shareholder returns. Current valuation levels are high relative to the ANI Pharmaceuticals Peer Group. Recent market returns have significantly outperformed the ANI Pharmaceuticals Peer Group. Total shareholder returns expected to significantly lag the overall equity market. Based on current investor expectations, ANI Pharmaceuticals shares should reach a level of $79 by 2028 — an 2.2% per year total shareholder return. A 2028 stock price of $116 would reflect median performance and a price of $136 would be required to reach upper quartile performance.
- Growth has been ANI Pharmaceuticals’ biggest valuation strength. Historical growth has been very high relative to the ANI Pharmaceuticals Peer Group and forecasted growth is relatively very high. Asset Growth, Revenue Growth, and Equity Growth have been superior. These factors have buoyed market perceptions of ANI Pharmaceuticals. ANI Pharmaceuticals’ historical income statement growth and balance sheet growth have diverged. Revenue growth has paralleled asset growth; earnings growth has exceeded equity growth resulting in an improving return on equity.
- Profitability is only average. The company has very high excess cash and will have to work to reinvest at attractive returns to support profitability and valuation.
- ANI Pharmaceuticals’ risk profile is favorable. Overall variability has been very high with very high revenue variability, above average E.P.S. variability, and very low stock price volatility. Financial Strength is relatively high and earnings’ expectations are relatively very high. The debt/capital ratio has been relatively steady.
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