Amneal shares rise after UBS initiates at Buy, cites “best-in-group” growth in specialty pharma
Amneal Pharmaceuticals Inc (NASDAQ:AMRX) shares rose 5.7% on Friday after UBS initiated coverage with a Buy rating and a $19 price target, citing what it sees as an attractive entry point following a recent pullback.
UBS said the stock’s roughly 14% decline over the past two months presents an opportunity in the specialty pharmaceuticals group, where it views Amneal as having a stronger growth profile relative to peers.
At about 11 times consensus 2027 earnings, UBS said Amneal’s valuation reflects expectations of only modest growth and limited confidence in its longer-term drivers.
The firm expects Amneal to deliver a five-year revenue compound annual growth rate of 7% and earnings per share growth of 15%, both above consensus estimates of 5% and 14%, respectively.
Analysts also forecast 300 basis points of operating margin expansion over five years, supported by product mix and operating leverage, while leverage is expected to gradually improve with net debt-to-EBITDA falling below three times.
UBS highlighted Amneal’s specialty pharmaceuticals segment as a key driver of growth, particularly Parkinson’s disease treatments Crexont and Rytary. It expects the segment to grow at a 6% CAGR through 2030, above consensus estimates.
The bank said Crexont is likely to continue gaining share from generics, while Rytary’s decline may be more gradual than previously expected. It also pointed to additional pipeline opportunities including Brekiya, which it estimates could reach up to $80 million in peak sales, as well as longer-term optionality from a GLP-1 manufacturing partnership.
In the Affordable Medicines segment, UBS forecasts 9% CAGR through 2030, driven by new product launches and pipeline expansion. It highlighted products including iohexol, bimatoprost, sodium oxybate and a biosimilar version of Xolair, noting that the value of new launch risk-adjusted sales could increase significantly between 2026 and 2028.
UBS also pointed to Amneal’s exposure to a large addressable market tied to roughly $80 billion in upcoming drug patent expiries.
