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CPH: Share Buybacks Will Support Earnings And Maintain A Balanced Outlook

Rising Medicaid Pressures And Generics Will Shrink Dermatology Prospects

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CPH
AnalystLowTarget
Not Invested
Published 29 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 3.57%
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AnalystLowTarget's Fair Value
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1Y
-3.6%
7D
-4.2%

Analysts have nudged their price target on Cipher Pharmaceuticals higher, from 14.00 dollars to 14.50 dollars, citing stronger expected revenue growth, improved profit margins, and a more attractive forward earnings multiple despite a slightly higher discount rate.

What's in the News

  • Cipher Pharmaceuticals repurchased 141,700 shares between July 1 and September 30, 2025, totaling CAD 2.18 million and representing 0.56% of outstanding shares (company buyback update).
  • In total, the company has repurchased 371,978 shares, or 1.46% of its float, for CAD 5.12 million under the normal course issuer bid announced on May 1, 2025 (company buyback update).
  • The completed buyback tranche is expected to provide incremental support to earnings per share and signal management’s confidence in Cipher Pharmaceuticals’ valuation and long term outlook (inferred from company buyback activity).

Valuation Changes

  • Fair Value Estimate has risen slightly from 14.00 dollars to 14.50 dollars per share, reflecting a modestly higher intrinsic valuation.
  • Discount Rate has increased slightly from 5.97% to 6.12%, which implies a marginally higher required return and risk premium in the model.
  • Revenue Growth has been revised up significantly from about 7.6% to approximately 11.2%, which indicates more optimistic expectations for top line expansion.
  • Net Profit Margin has increased materially from roughly 23.9% to about 32.3%, which signals a stronger outlook for operating efficiency and profitability.
  • Future P/E has fallen significantly from about 20.5x to roughly 13.6x, which suggests the shares are now modeled as less expensive relative to expected earnings.

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