Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 18 Sep, 24 | AMPH | Speculative Buy | USD 49.78 | USD 55.0 | USD 60.0 | 35 days | 20.5% |
Data Powered by EOD Historical Data (“EODHD”).
Amphastar Pharmaceuticals, Inc., a bio-pharmaceutical company, develops, manufactures, markets, and sells generic and proprietary injectable, inhalation, and intranasal products in the United States, China, and France. It offers BAQSIMI, a nasal spray for the treatment of severe hypoglycemia; Primatene Mist, an over-the-counter epinephrine inhalation product for the temporary relief of mild symptoms of intermittent asthma; Enoxaparin, to prevent and treat deep vein thrombosis; REXTOVY and Naloxone for opioid overdose; Glucagon for injection emergency kit; and Cortrosyn, for use as a diagnostic agent in the screening of patients with adrenocortical insufficiency. The company provides Amphadase, an injection to absorb and disperse other injected drugs; Epinephrine injection for allergic reactions; Lidocaine jelly, an anesthetic product for urological procedures; Lidocaine topical solution for various procedures; Phytonadione injection, a vitamin K1 injection for newborn babies; emergency syringe products; morphine injection for use with patient-controlled analgesia pumps; and Lorazepam injection for surgery and medical procedures. In addition, it offers Neostigmine methylsulfate injection to treat myasthenia gravis and to reverse the effects of muscle relaxants; Isoproterenol hydrochloride injection for mild or transient episodes of heart block; Ganirelix Acetate injection for the inhibition of premature luteinizing hormone surges; Vasopressin to increase blood pressure; and Regadenoson, a stress agent for radionuclide myocardial perfusion imaging. Further, the company distributes recombinant human insulin APIs and porcine insulin API. Additionally, it develops generic product candidates, such as injectable, inhalation, and analytical technologies; biosimial product candidates; and intranasal epinephrine for the treatment of allergic reactions. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.
Improved Bottom Line Performance: Net Margin of 25.5% in Q1 FY24 vs Industry Median of -1.7%
Lower Cash Cycle: 156.1 Days in Q1 FY24 vs 175.1 Days in Q1 FY23
Diminished Liquidity: Current Ratio of 2.18x in Q1 FY24 vs Industry Median of 2.94x
Balance Sheet Risk: Debt-Equity of 0.88x in H1 FY24 vs Industry Median of 0.47x
Product Pipeline Dependence, Concentration of Revenue, Quality Control Issues, Acquisition Integration Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 49.78 | 44.0 | 55.0 | 60.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Amphastar Pharmaceuticals Inc. (NASDAQ: AMPH) has recently broken through a horizontal trendline resistance, forming a higher high that indicates a potential short-term uptrend. As the stock ascends, it may face key resistance levels at USD 55.00 and USD 60.00 within the next 2-4 weeks. A successful breakout above these levels could generate increased buying momentum and further price appreciation.
On the daily chart, the 14-period Relative Strength Index (RSI) currently stands at 67.72, suggesting a bullish sentiment as it remains above the midpoint. Additionally, strong trading volumes support this upward trajectory. The stock is also trading above both its 21-day and 50-day Simple Moving Averages (SMAs), which could provide additional support against short-term volatility. Overall, the technical indicators are aligned favorably for continued upward movement, contingent on overcoming the identified resistance levels.
Based on the current price action and technical indicators, AMPH appears to be well-positioned on the chart and a ‘Speculative Buy’ rating has been given to Amphastar Pharmaceuticals Inc. (NASDAQ: AMPH) at the current market price of USD 49.78 as of 18 September 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| AMPH Amphastar P |
-0.0551 0.14% | 39.39 | 14.56 | - | 2.91 | 2.89 | 3.43 | 8.98 |
| ZTS Zoetis Inc |
-2.975 1.78% | 164.03 | 40.18 | 30.96 | 10.67 | 17.60 | 11.27 | 26.18 |
| MKKGY Merck KGaA ADR |
-0.12 0.42% | 28.66 | 21.25 | 14.93 | 3.10 | 2.14 | 3.60 | 12.98 |
| MKGAF MERCK Kommanditgesellschaft auf Aktien |
-1.925 1.33% | 142.50 | 21.73 | 14.95 | 3.16 | 2.15 | 3.56 | 12.82 |
| TAK Takeda Pharmaceutical Co Ltd ADR |
-0.07 0.53% | 13.04 | 32.67 | 11.53 | 0.01 | 0.87 | 0.02 | 0.07 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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