Amneal Pharmaceuticals (AMRX) just picked up two meaningful FDA wins, securing approvals for generic versions of Restasis and ProAir HFA that open doors into multibillion dollar ophthalmic and respiratory markets.

Those FDA wins help explain why, despite a softer 1 day share price return of minus 1.97 percent and a 7 day share price return of minus 4.63 percent, Amneal still boasts a 90 day share price return of 24.12 percent and a powerful 3 year total shareholder return of 419.13 percent. This suggests momentum has been building as the market prices in a more durable growth story.

If you are looking for more ways to put the healthcare theme to work in your portfolio, this is a good moment to explore healthcare stocks for new ideas.

With new FDA backed revenue streams coming and the stock still trading at a modest discount to analyst targets, is Amneal undervalued ahead of its next growth phase, or has the market already priced in the potential upside?

Most Popular Narrative Narrative: 11.6% Undervalued

With Amneal’s fair value pegged at $13.50 versus the recent $11.94 close, the most followed narrative points to remaining upside that hinges on execution.

The company is capitalizing on escalating government and payer initiatives to reduce healthcare costs by expanding its biosimilars and generics portfolio, areas expected to gain volume and market share under these cost containment pressures, supporting both top line growth and potential gross margin expansion.

Curious how this cost cutting supercycle in healthcare translates into Amneal’s playbook? The narrative quietly bakes in bold revenue growth, rising margins, and a future earnings multiple more often reserved for faster growing sectors. Want to see the exact assumptions driving that upside target?

Result: Fair Value of $13.50 (UNDERVALUED)

However, that upside case could unravel if U.S. generics pricing pressure intensifies or if high leverage constrains Amneal’s ability to fund its ambitious pipeline.

Build Your Own Amneal Pharmaceuticals Narrative

If you see the story differently or prefer building your view from the ground up, you can craft a personalized thesis in just minutes using Do it your way.

A great starting point for your Amneal Pharmaceuticals research is our analysis highlighting 4 key rewards and 4 important warning signs 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.