Stifel Nicolaus analyst Christian Glennie has reiterated their bullish stance on HIK stock, giving a Buy rating on April 10.
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Christian Glennie has given his Buy rating due to a combination of factors that highlight Hikma Pharmaceuticals’ promising financial outlook and strategic positioning. The company is on track to meet its full-year 2025 guidance, with all divisions performing as expected in the first half of the year. Notably, the Injectables division is anticipated to recover its margins in the second half, maintaining a ‘mid-30s’ margin for the full year.
Moreover, Hikma’s valuation appears attractive, with a current year price-to-earnings ratio of approximately 11x and an EV/EBITDA of around 8.0, both of which are below the five-year historical averages. The company’s diversified global operations, particularly its strong presence in the US market, provide resilience against potential tariff impacts. Additionally, the Branded and Generics divisions are expected to maintain stable growth, supported by strong local market positions and robust demand for specific products, respectively. These factors collectively support Glennie’s optimistic outlook for Hikma Pharmaceuticals.
In another report released on April 10, Jefferies also upgraded the stock to a Buy with a p2,400.00 price target.