In a report released yesterday, Michael Ryskin from Bank of America Securities maintained a Sell rating on Phibro Animal Health (PAHC – Research Report), with a price target of $21.00.
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Michael Ryskin has given his Sell rating due to a combination of factors including Phibro Animal Health’s recent financial performance and future growth outlook. Despite reporting solid second-quarter results with revenues of $309.3 million, which marked a 24% year-over-year increase, the company’s earnings and revenue projections remain slightly below expectations. The Animal Health segment, although showing a 33% revenue increase, fell short of estimates, reflecting some volatility attributed to the recent acquisition of MFA assets from Zoetis.
Another contributing factor is Phibro’s growth and profitability profiles, which are considered below those of its peers. Although the company updated its fiscal year 2025 guidance to reflect the new MFA assets, with sales and adjusted EBITDA projections aligning with previous estimates, the adjusted EPS guidance surpasses expectations. Nevertheless, these factors are not enough to offset concerns about its competitive positioning, leading to the continuation of the Underperform rating.