Hikma Pharmaceuticals: Strong Performance and Growth Potential Justify Buy Rating

Analyst Christian Glennie from Stifel Nicolaus reiterated a Buy rating on Hikma Pharmaceuticals (HIK – Research Report) and increased the price target to p2,650.00 from p2,500.00.

Christian Glennie has given his Buy rating due to a combination of factors that highlight Hikma Pharmaceuticals’ strong performance and potential for growth. The company delivered impressive financial results for FY24, surpassing expectations with a 6% beat to core EBIT, which indicates robust operational capabilities. Despite some challenges in the Injectables division, the overall outlook remains positive, with a forecasted organic earnings CAGR of approximately 7% from 2024 to 2028.
Furthermore, Hikma’s strategic adjustments, such as the rebasing of forecasts and the increase in the target price to 2,650p, reflect confidence in its future performance. The company’s attractive valuation, with a price-to-earnings ratio in line with its historical average, and a dividend yield of around 3%, further support the Buy rating. These elements combined suggest that Hikma is well-positioned for continued success, making it a compelling investment opportunity.

According to TipRanks, Glennie is an analyst with an average return of -10.2% and a 39.73% success rate.

In another report released on February 27, J.P. Morgan also maintained a Buy rating on the stock with a p2,600.00 price target.