Numis reckons that Hikma Pharmaceuticals (LON:HIK) may suffer a decline in profits this year while the shares ‘aren’t particularly cheap,’ Citywire has reported. The comments came after the blue-chip drugmaker updated investors on its full-year results yesterday, posting a seven-percent rise in core revenue and a 19-percent gain in core operating profit.
Hikma’s share price, which came under pressure yesterday, has slipped marginally into the red in London this morning, having given up 0.38 percent to 1,578.50p as of 10:27 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.47 percent higher at 7,192.59 points.
Numis weighs in on Hikma
Numis reaffirmed Hikma as a ‘hold’ yesterday, with a price target of 1,730p, following the group’s full-year results. Citywire quoted the broker’s analyst Paul Cuddon as commenting that while the blue-chip drugmaker had managed to turn itself round last year after the ‘ill-timed acquisition’ of Roxane Laboratories, its guidance for the current year implied “a decline in core operating profit, despite a more bullish outlook for injectables”.
“Consensus expectations for full-year 2019 offer little scope for error, and may see modest downgrades,” the analyst continued, adding that Hikma’s shares were not ‘particularly cheap’.
Other analysts on drugmaker
HSBC, which sees Hikma as a ‘reduce,’ boosted its price target on the shares from 1,225p to 1,350p today, while JPMorgan Chase & Co, which is ‘neutral’ on the company, trimmed its valuation on the shares from 1,800p to 1,700p. According to MarketBeat, the blue-chip drugmaker currently has a consensus ‘hold’ rating and an average price target of 1,737.50p.