Analyst Michael Ryskin of Bank of America Securities maintained a Sell rating on Phibro Animal Health, with a price target of $19.00.
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Michael Ryskin has given his Sell rating due to a combination of factors, despite Phibro Animal Health’s strong fourth-quarter performance. The company reported higher-than-expected revenues and earnings per share, driven by strong contributions from the Zoetis MFA assets and growth in their legacy Animal Health portfolio. However, the operating margins were below expectations due to increased distribution costs, inventory write-offs, and an unfavorable product mix.
Despite the positive financial results, Ryskin maintains an Underperform rating because Phibro Animal Health faces challenges in achieving growth and profitability comparable to its peers in the Animal Health sector. The company requires significant time and investment to improve its operating leverage and bridge these gaps. Additionally, the price objective set at $19.00 USD is significantly lower than the current trading price, indicating limited upside potential for investors.
According to TipRanks, Ryskin is a 3-star analyst with an average return of 2.5% and a 53.40% success rate. Ryskin covers the Healthcare sector, focusing on stocks such as Agilent, Thermo Fisher, and Bruker.