Hikma Pharmaceuticals (HIK)

Sector:

Pharma and Biotech

Index:

FTSE 100

1,960.00p
   
  • Change Today:
      35.00p
  • 52 Week High: 2,205.00
  • 52 Week Low: 1,722.00
  • Currency: UK Pounds
  • Shares Issued: 221.89m
  • Volume: 299,387
  • Market Cap: £4,348.95m
  • RiskGrade: 125

Broker tips: HSBC, Hikma, Pearson

By Michele Maatouk

Date: Wednesday 03 May 2023

LONDON (ShareCast) - (Sharecast News) - Berenberg upgraded HSBC to 'buy' from 'hold' on Wednesday, keeping the price target at 780p, as it said the bank's return on tangible equity of around 13% and attractive growth potential are undervalued.
"HSBC's footprint is structurally attractive," Berenberg said. "As well as providing the bank with access to faster-growing markets, HSBC's global presence means it is well placed to provide high-returning transaction banking services for global corporates.

"This structural strength was previously eclipsed by cyclical headwinds and uncertainty related to HSBC's restructuring. More recently, however, higher interest rates have supported HSBC's returns and risks from restructuring are now modest."

Berenberg said that strengthening activity, particularly in Asia, provides further cyclical support, and growth can be supported further by the bank's recent investments.

RBC Capital Markets lifted its price target on Hikma Pharmaceuticals to 2,050p from 1,950p as it reiterated its 'outperform' rating.

The bank noted that price erosion is moderating in the US generics market largely due to improving supply side dynamics.

"As a result Hikma has raised guidance for the Generics division to close to 20% revenue growth from low double digits.

"However, exchange rates in the MENA region have deteriorated further (particularly Egypt) which will negatively impact the branded division.

"We update our model for improved pricing in Generics and latest exchange rates in MENA, resulting in modest forecast changes."

JP Morgan kept its 'overweight' rating on Pearson, arguing that the educational publisher is not as exposed to the potential threat of artificial intelligence as some of its rivals.

Shares in education services specialists fell sharply on Tuesday after US firm Chegg warned about the impact of ChatGPT on its homework help services. It tumbled 48%, while London-listed Pearson shed 10%.

But JP Morgan - which has a target price of 1,230p on Pearson - said in a note: "While ChatGPT could be seen as an alternative for students seeking answers to their homework, we do not see it as an alternative to Pearson's text books, courseware and learning platforms that provide trusted programmes that are adopted by colleges, and have to be followed and consumed by students for around 70% of higher education courses.

"The difference is that Pearson provides the content and sets the questions, whereas Chegg and ChatGPT provide answers to those questions.

"In our view, ChatGPT/AI will not provide complete and structured learning programmes with trusted content."

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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 1,960.00p
Change Today 35.00p
% Change 1.82 %
52 Week High 2,205.00
52 Week Low 1,722.00
Volume 299,387
Shares Issued 221.89m
Market Cap £4,348.95m
RiskGrade 125

HIK Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
51.81% below the market average51.81% below the market average51.81% below the market average51.81% below the market average51.81% below the market average
45.1% below the sector average45.1% below the sector average45.1% below the sector average45.1% below the sector average45.1% below the sector average
Price Trend
49.31% above the market average49.31% above the market average49.31% above the market average49.31% above the market average49.31% above the market average
67.27% above the sector average67.27% above the sector average67.27% above the sector average67.27% above the sector average67.27% above the sector average
Income
9.05% above the market average9.05% above the market average9.05% above the market average9.05% above the market average9.05% above the market average
42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average42.86% above the sector average
Growth
37.88% below the market average37.88% below the market average37.88% below the market average37.88% below the market average37.88% below the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% 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 03-May-2024

Time Volume / Share Price
16:35 169,283 @ 1,960.00p
16:35 9 @ 1,960.00p
16:35 445 @ 1,960.00p
16:35 2,056 @ 1,960.00p
16:35 410 @ 1,960.00p

HIK Key Personnel

CEO Riad Mishlawi

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