Stifel raises Kamada stock price target on strong plasma growth

Stifel has increased its price target for Kamada Ltd. (NASDAQ: KMDA) shares to $12.00, up from $11.00, while retaining a Buy rating on the stock. Currently trading at $7.68, the company appears to be undervalued, as indicated by its low PEG ratio of 0.99, suggesting the stock trades at a discounted price relative to its near-term earnings growth.

Kamada reported a 11% increase in Q3 revenue, reaching $52 million, driven by growth in specialty plasma products and franchises, as well as strong distribution revenues from expansion in the Middle East and North Africa (MENA) region and new biosimilars. The company's revenues are expected to grow by 14% in 2026, reaching $205 million to $208 million, and adjusted EBITDA is projected to increase by 26%, reaching $52 million to $54 million.

With $75.3 million in cash and equivalents, Kamada has increased its dividend payments to $32 million for the year, resulting in a dividend yield of 2.35%. The company is investing in clinical education, expanding distribution networks, and pursuing business development opportunities, including mergers and acquisitions, to accelerate organic growth.

Recently, Kamada launched two new biosimilar products, Ustekinumab-Kamada and Enoxaparin-Kamada, targeting immune-mediated inflammatory diseases and thromboembolic disorders, respectively. This expansion brings the company's biosimilar portfolio to four commercialized products. Stifel and StoneX analysts have both reiterated their Buy ratings for Kamada, with price targets of $12.00 and $15.00, respectively, citing the company's strong growth in the biosimilar market.