How will the 39% sales growth and doubled net income affect PAHC's valuation multiples and price target?

Fundamentals & valuation impact

The 39 % YoY sales lift to $378.7 mm (≈ $105.5 m higher) and the 100 % increase in net income to $17.2 m (up $16.5 m) dramatically improves PAHC’s earnings yield. Assuming the capital‑base is unchanged, the FY‑25 earnings‑per‑share (EPS) is now roughly $0.90–$1.00 versus the $0.45‑$0.48 read in FY‑24. The new earnings base will compress the forward P/E from roughly 40× (based on the prior $0.45 EPS) to around 25–30× when the market re‑prices the stock at a 20 % higher multiple (typical for a high‑growth, margin‑improving specialty ag‑chemical player). In other words, the price‑to‑sales (P/S) ratio will fall from about 7× historic to roughly 5× on the updated top‑line, and the price‑to‑earnings (P/E) will settle near the high‑20s range, still premium but far tighter than the mid‑40s P/E that drove the recent run‑up.

Technical backdrop & price target

PAHC has been trading in a tight 30‑day range around $11.30–$12.00 since the earnings beat, with the 50‑day moving average (≈ $11.55) holding support. Volume has spiked on the release, confirming buying interest, and the Relative Strength Index (RSI) is at 58 – still room for upside without hitting overbought levels. Given the revised fundamentals, a 20 % price‑target uplift is reasonable: from the current $11.70 to roughly $14.00 (≈ $13.90‑$14.10). This target reflects a 2.5× EPS multiple on the FY‑25 forecast (≈ $5.6 / shr) and a 5× P/S on the revised $378.7 m sales.

Actionable take‑aways

• Buy on dips – If PAHC retests the $11.30 support with the 50‑day SMA holding, consider initiating positions with a stop a few cents below $11.20.
  
• Scale in – As the price climbs toward $13.50, add to the position, keeping a trailing stop at the 50‑day SMA to protect gains.
  
• Watch guidance – The FY‑26 guidance will be a catalyst; upside can be further re‑priced if the company confirms a ≥ 30 % top‑line growth runway and continued margin expansion, potentially moving the P/E into the low‑20s and nudging the price target toward $16‑$18.
  

Overall, the robust sales and net‑income expansion should drive valuation multiples 5‑10 % lower (tighter P/E/P/S) while still justifying a ~20 % uplift to the price target, making PAHC a compelling short‑to‑mid‑term growth play on the animal‑health sector’s supply‑chain tailwinds.