Phibro Animal Health Corporation (NASDAQ:PAHC) is among the 7 Cheap Pharma Stocks to Buy According to Hedge Funds.
The seventh stock on our list cheap pharmaceutical stocks is Phibro Animal Health Corporation (NASDAQ:PAHC).
TheFly reported on Feb. 6 that Morgan Stanley raised its price target on PAHC to $49 from $45 and maintained an equal-weight rating. The firm cited strong operating performance in the company’s latest quarterly results, highlighting effective execution within the Animal Health segment and progress related to the Zoetis MFA transaction. The upgrade came after significant margin expansion, a better forecast for fiscal 2026, and improved earnings in the second quarter. Morgan Stanley also cited disciplined cost control as an important element, noting that recent results show strong momentum in several important business areas.
Additionally, on February 4, Phibro Animal Health Corporation (NASDAQ:PAHC) revealed fiscal second-quarter results for the fiscal year ending December 31, 2025. The report shows significant year-over-year improvement, with net sales increasing 21% to $373.9 million, while net income increased to $27.5 million. Adjusted EBITDA increased 41% to $68.1 million, while adjusted diluted EPS increased 58% to $0.87.
A strong quarter led to an increase in the company’s guidance for fiscal 2026. PAHC has updated its full-year net sales estimates to between $1.45 billion and $1.5 billion and adjusted EBITDA to between $245 million and $255 million in light of improved operating momentum and higher profitability forecasts for the remainder of the year.
Phibro Animal Health Corporation (NASDAQ:PAHC) is a global animal health and nutrition company that develops and markets vaccines, medicinal feed additives, trace minerals and specialty products to improve the health of livestock and companion animals.
While we recognize PAHC’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
READ NEXT: 12 Unstoppable Dividend Stocks to Buy According to Analysts and list of dividend champions, contenders and challengers: 15 top-yielding stocks.
Disclosure: None.