PAHC Stock Surged 22% on Earnings Beat: Why Analysts Still See Fair Value Near $43

Rexielyn Diaz4 minute read
Reviewed by: Thomas Richmond
Last updated Feb 6, 2026

Key Stats for PAHC Stock

  • Price Change for PAHC stock: 21.95% on February 5, 2026
  • PAHC Share Price as of Feb. 5: $50
  • 52-Week High: $50.05
  • PAHC Stock Price Target: $43

Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>

What Happened?

Phibro Animal Health Corporation (PAHC) stock jumped almost 22% after the company reported strong fiscal Q2 2026 results and raised its earnings outlook.​

The move pushed shares to fresh 52-week highs because investors responded positively to accelerating revenue growth and expanding margins in the core animal health segment.​

PAHC reported higher sales across its Animal Health and Mineral Nutrition businesses, while Performance Products remained a smaller contributor.​ Stronger demand for medicated feed additives and nutritional specialties supported volume growth, and pricing actions helped offset cost pressures.​

The company reaffirmed its commitment to regular dividends, and it has a 1.0% dividend yield with a payout ratio of about 21%.​ PAHC declared a 0.12 per share cash dividend payable on March 4, 2026, which reinforces its shareholder-return focus.​

Investors may view this combination of earnings momentum and dividends as attractive, but they should weigh it against the stock’s sharp rerating after the earnings spike.​

Phibro operates three main segments: Animal Health, Mineral Nutrition, and Performance Products, and it sells products into poultry, swine, cattle, aquaculture, and companion animal end markets.​

The company’s portfolio includes antibacterials, anticoccidials, nutritional specialty products, and vaccines that support animal health, food safety, and welfare.​

It also manufactures trace mineral formulations and specialty ingredients used in personal care and industrial applications, so its results reflect both livestock and broader industrial demand trends.​

PAHC Stock Price Targets (TIKR)

See analysts’ growth forecasts and price targets for PAHC stock (It’s free!) >>>

What the Market Is Telling Us About PAHC Stock

The latest rally in PAHC stock suggests investors are increasingly confident that the company can sustain mid‑single‑digit revenue growth with faster earnings expansion.​

TIKR shows a forward two‑year revenue CAGR of 8.3% and a forward two‑year EPS CAGR of 22.0%, which supports the bullish reaction.​

Profitability trends also look constructive, because PAHC’s latest twelve‑month gross margin stands at 32.2% and EBIT margin at 12.2%.​ Returns on capital are solid for a mid‑cap animal health name, with LTM ROE at 31.8% and ROIC at 16.8%.​

These metrics indicate that management is deploying capital efficiently, so incremental growth can create value if demand conditions remain favorable.​

However, the balance sheet introduces some risk, since PAHC carries roughly 656.73 million dollars of net debt and LTM net debt to EBITDA of 2.72 times.​

Leverage is manageable today, but it could limit flexibility if industry headwinds or higher interest rates pressure cash flows.​ Investors should monitor whether free cash flow remains strong enough to fund growth investments, service debt, and maintain the dividend altogether.​

The business still faces headwinds, including regulatory scrutiny on antibiotic usage, commodity cost volatility, and potential disease‑driven swings in livestock herds.​Investors should weigh these risks against tailwinds such as rising global protein consumption, demand for food safety, and continued innovation in vaccines and nutritional specialties.

Estimate a company’s fair value instantly (Free with TIKR) >>>

How Much Upside Does PAHC Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

  1. Revenue Growth
  2.  Operating Margins
  3.  Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

See a stock’s true value in under 60 seconds (Free with TIKR) >>>

Looking for New Opportunities?

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!

Related Posts

Join thousands of investors worldwide who use TIKR to supercharge their investment analysis.

Sign Up for FREENo credit card required