Share Prices & Company Research

Market News

31 Mar 2021 | 11:56

Jefferies upgrades Hikma to 'buy'

(Sharecast News) - Analysts at Jefferies upgraded drugmaker Hikma Pharmaceuticals from 'hold' to 'buy' on Wednesday, stating the group's share price was yet to reflect "a series of upcoming product catalysts". Beyond Hikma's gVascepa and Gx Advair products, Jefferies said it also sees "significant optionality" from specialty product launches in US generics and new launches in injectables, both of which should sustain strong mid-term growth.

As a momentum stock, Jefferies said looking beyond the 2021 trading year; its 2022 underlying earnings forecasts were 5% above consensus, while 2023 was 11%, and added proprietary analysis of NADAC data with IQVIA data also suggested potential upside from Gx pricing if current trends persist.

Jefferies also noted that Hikma trades at a 10% discount on an enterprise value to earnings before interest, tax, depreciation and amortisation ratio despite marginally stronger growth than its peer group.

"Hikma has typically traded on momentum, and we see the strong outlook on new product launches as supportive of multiple expansion," said Jefferies, which issued Hikma with its new price target of 2,870.0p.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.