Citi sees room for upside surprise on sales at Hikma Pharmaceuticals
Analysts at Citi reiterated their 'buy' stance for shares of Hikma Pharmaceuticals ahead of the company's trading statement due out later in the same week.
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That said that September data from IQVIA pointed to business trending ahead of Hikma's own guidance, adding that they now saw the possibility of a 2-3% revenue upgrade alongside the trading statement.
Furthermore, its recent meeting with the outfit's chief executive officer and Meet Management had highlighted the potential for the pipeline at its Injectables arm and for its US generics and Branded divisions.
Regarding the latter, they expected growth in the Middle East, North Africa region to become more evident.
"Hikma offers robust organic growth, earnings momentum, balance sheet optionality, and growing pipeline promise," they argued.
They estimated that the company's sales and earnings per share would grow at a compound annual growth rate of 6.0-7.0% over 2021-26 with upside earnings risk and attractively skewed bull-bear net present value range of £35-19.