Hikma Pharmaceuticals (HIK – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on April 8. Analyst James Vane from Jefferies upgraded the rating on the stock to a Buy and gave it a p2,400.00 price target.
James Vane has given his Buy rating due to a combination of factors that highlight Hikma Pharmaceuticals’ potential for growth and resilience. The company is expected to benefit from its Contract Manufacturing Organization (CMO) strategy, which is anticipated to drive growth and profitability. This strategy is gaining momentum, particularly with a significant long-term partnership with a global pharmaceutical company, set to commercialize products by 2027. Additionally, the recent market selloff, which was exacerbated by macroeconomic concerns, has created an attractive buying opportunity, as the market seems to undervalue Hikma’s US Generics (Gx) segment.
Moreover, Hikma’s strong US manufacturing presence and limited exposure to imports make it well-insulated from potential tariff impacts, further strengthening its position. The upcoming management site visit in the US is expected to provide insights into growth prospects and the CMO strategy, potentially acting as a catalyst for the stock. With these factors in mind, Vane has raised the price target to 2,400p, reflecting confidence in Hikma’s ability to capitalize on its strategic initiatives and market conditions.
Based on the recent corporate insider activity of 18 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HIK in relation to earlier this year.