Amneal Pharmaceuticals (AMRX) just secured FDA approval for its 1 mg/mL epinephrine injection in single and multi dose vials, plugging into a critical hospital therapy market with roughly $118 million in U.S. annual sales.

The FDA approval lands as Amneal’s share price sits at $12.57 and recent momentum has been strong, with a roughly 62 percent year to date share price return and a powerful multi year total shareholder return backing the longer term growth story.

If this approval has you rethinking your exposure to healthcare, it could be a moment to explore other opportunities across healthcare stocks and see what else is positioning for the next leg higher.

With the share price already up more than 60 percent year to date and only a modest gap to Wall Street’s target, the real question now is whether Amneal still trades at a discount or if the market is already pricing in the next leg of growth.

Most Popular Narrative Narrative: 8.9% Undervalued

Compared with the last close at $12.57, the most followed narrative sees Amneal’s fair value closer to $13.80, hinting at further upside driven by execution and pipeline momentum.

The fair value estimate has risen slightly to approximately $13.80 from about $13.50. This reflects modest upward revisions to the intrinsic value outlook.

The future P/E has risen modestly to around 26.8x from about 26.2x. This signals a slightly higher valuation multiple applied to forward earnings.

Curious what kind of revenue path and margin lift could justify that richer earnings multiple, yet still screen as undervalued versus today’s price, and why consensus thinks this growth story is only getting started, not peaking here.

Result: Fair Value of $13.80 (UNDERVALUED)

However, that upside depends on Amneal avoiding intense U.S. generics price pressure and executing on a differentiated biosimilar and specialty pipeline.

Build Your Own Amneal Pharmaceuticals Narrative

If this view does not quite match your own or you prefer to dig into the numbers yourself, you can build a fresh narrative in just a few minutes, 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.