Highlights

  • Brokerages including Panmure Liberum, Stifel Europe, Jefferies, and Berenberg reaffirmed ‘Buy’ ratings on Hikma Pharmaceuticals.
  • The average analyst target price stands at GBP 23.31, implying a potential upside of over 47% from the current price.
  • Hikma reported a 6% revenue increase in H1 2025, supported by steady performance across all segments.

Hikma Pharmaceuticals PLC (LSE:HIK), the multinational pharmaceutical group, continues to attract favorable analyst sentiment, with key brokerages maintaining ‘Buy’ recommendations, might be following the company’s interim financial performance for the six months ended 30 June 2025.

Research houses including Panmure Liberum, Stifel Europe, Jefferies, and Berenberg reiterated their positive stance on the stock. The company’s average target price among these brokerages stands at GBP 23.31, representing a potential 47.33% upside from its latest closing price of GBP 15.82.

Brokerage Ratings and Price Targets

  • Panmure Liberum, represented by analyst Seb G. Jantet, reaffirmed a ‘Buy’ rating with a target price of GBP 25.00.
  • Stifel Europe, led by Christian Glennie, maintained a ‘Buy’ rating and set a target price of GBP 24.00.
  • Jefferies, represented by James Vane-Tempest, also issued a ‘Buy’ recommendation with a price target of GBP 23.60.
  • Berenberg, through analyst Beatrice Fairbairn, maintained a ‘Buy’ call, assigning a target price of GBP 23.00.

The average analyst recommendation remains firmly in the ‘Buy’ category, with a mean rating of 1.91.

Financial Highlights for H1 2025

Hikma reported Group revenue growth of 6%, supported by increased volumes across all business segments. Injectables revenue rose 12%, driven by robust demand across Europe, MENA, and North America, while Branded revenue increased 4% on higher market share in key territories.

The Group’s core operating profit declined 7% year-on-year, but management reiterated expectations for higher growth in the second half of FY2025. The company’s core operating margin for Injectables stood at 30.0%, and the Branded business achieved 30.4%, supported by cost optimization and new product launches.

Hikma declared an interim dividend of 36 cents per share, up 12% from the prior year, supported by stable cash flows and a net debt-to-core EBITDA ratio of 1.7x as of June 30, 2025.

Strategic and Operational Developments

Hikma continued to advance its R&D and manufacturing investments, with a 20% increase in R&D expenditure and ongoing integration of the Xellia portfolio. The Group’s commitment to expanding its US manufacturing footprint remains central to its long-term strategy, with plans to invest USD 1 billion by 2030 to enhance domestic production and R&D capacity.

Additionally, the company announced multiple partnerships and product approvals, including US FDA approval for TYZAVAN™ and the launch of a biosimilar referencing Stelara®, further expanding its specialty pipeline.