Update shared on 29 Oct 2025
Fair value Increased 1.52%Hikma Pharmaceuticals' analyst price target was slightly raised to £25.40 from £25.02, as analysts cite updated growth and profitability forecasts. This comes despite recent downward adjustments in individual firm targets.
Analyst Commentary
Recent analyst updates on Hikma Pharmaceuticals reflect a balance of optimism for the company's fundamental strengths and caution around certain execution risks. Analysts have adjusted price targets downward, but have generally maintained positive ratings, suggesting continued confidence in the firm’s growth trajectory and market positioning.
Bullish Takeaways- Bullish analysts continue to highlight Hikma's strong underlying growth. Positive long-term fundamentals are seen as supporting higher valuation multiples even in the face of short-term adjustments.
- The company’s profitability forecasts have been updated positively, reflecting improved cost discipline and strategic portfolio management.
- Despite recent target revisions, analysts have upheld favorable ratings, pointing to resilience in core generics and specialty segments that underpin future earnings potential.
- Ongoing investments in new product development and international expansion are viewed as important drivers of sustainable future revenue growth.
- Bearish analysts remain cautious about execution risks, particularly related to the pace of regulatory approvals and competitive pressures in key markets.
- Recent price target reductions indicate a tempering of near-term valuation expectations due to headwinds in select business lines.
- Some analysts express concern over the impact of cost inflation and potential delays in product launches, which could weigh on margins and growth.
What's in the News
- Hikma and Gedeon Richter received FDA approval for their biosimilar denosumab products, EnobyTM and XtrenboTM, for treating osteoporosis and related conditions. This approval allows Hikma to exclusively commercialize the products in the U.S. (Key Developments)
- The company reaffirmed its full-year 2025 guidance, projecting Group revenue growth of 4% to 6%, core operating profit between $730 million and $770 million, and expected improvements in core operating margins for key business segments. (Key Developments)
- Hikma recommended an increase in its interim dividend to 36 cents per share, up from 32 cents per share in the first half of 2024. The dividend will be paid on 18 September 2025. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from £25.02 to £25.40.
- Discount Rate remains unchanged at 6.82%.
- Revenue Growth expectations have edged lower, with updated projections moving from 6.05% to 6.01%.
- Net Profit Margin forecasts have declined modestly, dropping from 15.67% to 15.57%.
- Future P/E ratio has increased marginally, moving from 15.27x to 15.39x.
Disclaimer
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