Hikma Pharmaceuticals (HIK)

Sector:

Pharma and Biotech

Index:

FTSE 100

1,964.00p
   
  • Change Today:
      6.00p
  • 52 Week High: 2,205.00
  • 52 Week Low: 1,722.00
  • Currency: UK Pounds
  • Shares Issued: 221.89m
  • Volume: 14,582
  • Market Cap: £4,357.83m
  • RiskGrade: 125

Berenberg stays at 'hold' on Hikma Pharmaceuticals

By Iain Gilbert

Date: Monday 06 Nov 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg reiterated their 'hold' rating and 2,100.0p target price on Hikma Pharmaceuticals on Monday, saying a "lighter" second half was playing out in its injectables unit.
Berenberg said that although Hikma shares have given up some of their gains over the past month, down roughly 11% over the period, these moves were similar to those of generic and speciality pharma sector peers. However, it also said it does not see any near-term catalysts to help Hikma re-rate.

The German bank updated its model to factor in new guidance across all three divisions, as well as higher finance costs of roughly $85.0m.

"Our price target is unchanged and, with shares trading on c8x EV/EBITDA (in line with sector peers), valuation looks fair. Any visible improvement or deterioration in the US injectables business would make us revisit our investment case," said Berenberg.

Injectables' core operating margin was expected to be closer to 36%, rather than 37%, and revenue growth was seen at roughly 7%, down from 9%, in 2023, mainly due to supply constraints in the US, something management said was a temporary problem.

However, the analysts pointed out that organic top-line trends were already looking light in the first half, tracking 3-4% after stripping out the 5% top-line benefit from mergers and acquisitions. Additionally, Berenberg noted Hikma's ramp-up of sterile drug compounding in the US was "taking more time than expected" as it continues to wait for state licences from New York and California.

"Hikma provided a better-than-expected margin target for the branded division of 23%, thanks to strong MENA (Middle East and North Africa) demand and operational efficiencies," Berenberg said.

"However, FX remains volatile, and the MENA region (with ongoing geopolitical tensions) remains difficult to forecast. Hikma confirmed it has minimal exposure (both sales and production) to affected countries in the region."

Reporting by Iain Gilbert at Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HIK Market Data

Currency UK Pounds
Share Price 1,964.00p
Change Today 6.00p
% Change 0.31 %
52 Week High 2,205.00
52 Week Low 1,722.00
Volume 14,582
Shares Issued 221.89m
Market Cap £4,357.83m
RiskGrade 125

HIK Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
51.18% below the market average51.18% below the market average51.18% below the market average51.18% below the market average51.18% below the market average
21.57% below the sector average21.57% below the sector average21.57% below the sector average21.57% below the sector average21.57% below the sector average
Price Trend
56.56% above the market average56.56% above the market average56.56% above the market average56.56% above the market average56.56% above the market average
69.81% above the sector average69.81% above the sector average69.81% above the sector average69.81% above the sector average69.81% above the sector average
Income
8.95% above the market average8.95% above the market average8.95% above the market average8.95% above the market average8.95% above the market average
14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average
Growth
36.86% below the market average36.86% below the market average36.86% below the market average36.86% below the market average36.86% below the market average
42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average42.86% below the sector average

What The Brokers Say

Strong Buy 4
Buy 2
Neutral 4
Sell 1
Strong Sell 0
Total 11
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HIK Dividends

  Latest Previous
  Final Interim
Ex-Div 21-Mar-24 10-Aug-23
Paid 03-May-24 15-Sep-23
Amount 47.00¢ 25.00¢

Trades for 17-Jun-2024

Time Volume / Share Price
10:15 11 @ 1,964.00p
10:15 141 @ 1,964.00p
10:15 38 @ 1,961.00p
10:15 91 @ 1,961.00p
10:15 216 @ 1,961.00p

HIK Key Personnel

CEO Riad Mishlawi

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