Jefferies has raised its price target on Hikma Pharmaceuticals to 2,025p from 1,870p, citing the expanding contract manufacturing business as the driver. The buy rating is unchanged, with the new target implying 24% upside from Tuesday's share price of 1,633p. Analyst James Vane-Tempest nudged medium-term revenue and earnings estimates up by 1% to 2%, encouraged by the contract manufacturing organisation arm and its longer-term potential. Management expects any future headwind from sodium oxybate to be offset by CMO expansion, with commercial production on a large contract due to begin in 2027, and Hikma is targeting roughly 20% of prescription drug revenue from contract manufacturing by 2030. The company reiterated full-year group guidance at its interim results while raising branded guidance to the top end of the range, though Jefferies cautions against reading the first-half performance as a run rate due to tender timing and temporary stockpiling in the Middle East and North Africa. The injectables franchise has stabilised, with around 80% of Vanco Ready customers having fully or partially switched to Tyzavan, and Jefferies expects a return to top-line and profit growth in that division from 2027. Jefferies forecasts revenue of $3.46 billion this year, broadly in line with consensus, rising to $3.57 billion in 2027, about 1% below the market.
Hikma Pharmaceuticals PLCJefferies raised price target and maintained buy rating, citing CMO growth.
Jefferies Financial Group Inc