This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Generic drug development and sales keeps the industry competitive. The company recently signed a licensing agreement with Omega Pharma. Broker Numis (15 May) says Hikma had a solid Q1. Shares rallied after its May trading update. Scheduled results in August could give the shares another boost if they meet/beat expectations.
Risks to Hikma shares include regulatory refusal of new drugs. Jefferies (18 May) says the company faces challenging US generic market. A development/trial failure could impact sentiment. A flood of other generic drugs could put Hikma’s competitive edge at risk
Consensus is Bullish with 31% of brokers saying Buy and 46% suggesting Hold, however, all target prices suggest downside from current levels, but these may require updating in light of the share price rally and breakout.
Next Event: H1 Results, 15 Aug; Ex-dividend, late-Aug
Latest Broker 12-Month Consensus: 31% Buy, 46% Hold, 23% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 8.4 | 15.5 | 34.6 | 65.6 | 17.8 | -37.0 | -24.0 | -5.4 | 52.7 |
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Prepared by Michael van Dulken, Head of Research