Hikma Pharmaceuticals: Strong FY24 Performance and Promising FY25 Outlook Justify Buy Rating

Stifel Nicolaus analyst Christian Glennie maintained a Buy rating on Hikma Pharmaceuticals (HIK – Research Report) today and set a price target of p2,500.00.

Christian Glennie has given his Buy rating due to a combination of factors that highlight Hikma Pharmaceuticals’ strong performance and promising outlook. The company reported a solid financial performance for FY24, with revenues, operating profit, and adjusted EPS slightly surpassing expectations. Notably, the Injectables and Generics divisions both exceeded their respective growth forecasts, indicating robust operational execution.
Looking ahead to FY25, Hikma’s guidance aligns with market expectations, suggesting continued growth across its divisions. The company is well-positioned for organic earnings growth, supported by attractive valuation metrics such as a PE ratio of approximately 12.0x and an EV/EBITDA ratio around 8.0. These factors, combined with the company’s ability to navigate challenging market conditions, underpin Glennie’s confidence in maintaining a Buy rating for Hikma Pharmaceuticals.