Credit Suisse initiates coverage of Hikma at 'outperform'

The bank - which has set a target price of 1,700p for the drug maker, indicating upside potential of around 20% - argued that the year-to-date underperformance had been "overdone, with headwinds in US generics over-emphasised".

Instead, it said, its research indicated "an improving outlook for US generics, while we also view Hikma’s positioning as attractive in a recessionary environment".

It continued: "Hikma trades at close to an all-time low 8 x price-earnings, and 55% discount to generic peers versus its 10-year average 16% premium.

"It trades in line with highly leveraged US peers Endo, Viatris, Organon and Teva Pharmaceuticals on enterprise value-earnings before interest, tax, depreciation and amortisation, despite a stronger growth profile and a strong balance sheet."

As at 1245 GMT, shares in Hikma were trading 1% higher at 1,458.5p.