Morgan Stanley Maintains Equal Weight on Phibro Animal Health Corporation (PAHC), Cites Margin Expansion

Core Viewpoint - Phibro Animal Health Corporation (NASDAQ:PAHC) is recognized as one of the seven cheap pharmaceutical stocks to consider for investment, particularly noted for its strong operational performance and positive financial outlook [1][2]. Financial Performance - For the fiscal second quarter ending December 31, 2025, Phibro reported a 21% increase in net sales to $373.9 million and a rise in net income to $27.5 million [4]. - Adjusted EBITDA increased by 41% to $68.1 million, while adjusted diluted EPS rose by 58% to $0.87 [4]. - The company has updated its fiscal 2026 net sales estimates to between $1.45 billion and $1.50 billion, with adjusted EBITDA projected between $245 million and $255 million, reflecting improved operating momentum [5]. Analyst Ratings - Morgan Stanley raised its price target for PAHC from $45 to $49, maintaining an Equal Weight rating, citing strong operational performance and effective execution in the Animal Health segment [3]. - The upgrade was influenced by significant margin expansion, a favorable fiscal 2026 forecast, and a profit beat in the second quarter [3].