A Fresh Valuation Look at Amphastar Pharmaceuticals (AMPH) After US-China Trade Tensions Shake Healthcare Stocks

Amphastar Pharmaceuticals (AMPH) shares took a sharp turn alongside other healthcare stocks after renewed tensions in US-China trade relations. President Trump’s latest remarks have investors rethinking potential risks tied to supply chain costs and disruptions.

See our latest analysis for Amphastar Pharmaceuticals.

Amphastar’s share price has swung sharply lower in recent weeks, driven by sector-wide selling as trade tensions have investors reassessing supply chain risks and costs across healthcare. Despite a brief rally in the last quarter, that momentum has faded, leaving the stock down more than 35% year to date and showing a steep 1-year total shareholder return of -50%, which is well below its longer-term track record.

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With shares now trading well below analyst targets after months of heavy selling, the key question for investors is whether Amphastar is an undervalued healthcare pick or if the market has already accounted for all future growth potential.

Most Popular Narrative: 26% Undervalued

Based on the most closely followed narrative, Amphastar's fair value sits well above its recent closing price of $23.63, suggesting strong upside potential if the projections hold true.

The expanding negotiating leverage of large PBMs and hospital networks, coupled with the trend toward payer cost containment (such as mandatory generic substitution), suggests future headwinds for topline growth and net margin compression, especially as Amphastar's portfolio remains focused on generics and cost-effective injectables.

Read the complete narrative.

Curious about what’s really driving the sizable gap between price and value? This widely discussed narrative is built on aggressive growth forecasts and shrinking margins. The twist is a daring profit outlook and lower-than-typical future multiple set the stage. See which assumptions power this bullish target.

Result: Fair Value of $32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Amphastar’s expanding U.S. manufacturing combined with a robust, diversified pipeline could offset margin risks and drive future growth.

Find out about the key risks to this Amphastar Pharmaceuticals narrative.

Build Your Own Amphastar Pharmaceuticals Narrative

If you see things differently or want to dive deeper, you can piece together your own take in under three minutes. Do it your way.

A great starting point for your Amphastar Pharmaceuticals research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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