) with buy and a $25 target.
Analyst David Maris says AaiPharma has made the transition over the past several years from a historically contract-services business model to a specialty pharmaceutical model, primarily through acquisitions of branded products in the areas of pain management and critical care. As a small company making the transition, he expects likely hiccups along the way. However, the stock trades at a 40% discount to the sector average.
Maris will look for further evidence of greater organic growth and less leverage, however, he thinks the magnitude of the stock-price discount accorded to the stock is too severe, and that the earnings estimates are too low.