RBC Capital ups price target on Hikma

(Sharecast News) - RBC Capital Markets has upped both forecasts and its price target for blue chip generics specialist Hikma Pharmaceuticals. The broker said Hikma had recently provided mid-term guidance that "reflects growing optimism about the Rx and injectables businesses".

It continued: "This adds to the positive outlook for the branded unit, communicated in late 2024. Overall, Hikma anticipates three-year revenue growth of 6% to 8% per annual, and core operating profit growth of 7% to 9% per annum."

RBC has therefore increased its 2027 forecasts for earnings before interest and tax by 9%, and the price target by 3%, to 2,635p.

It concluded: "With 27% upside, we reiterate our 'outperform' recommendation."

As at 1330 BST, shares in Hikma were largely flat at 2,078p.