Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Hikma Pharmaceuticals top mid-cap casualty as Jefferies International downgrades

Jefferies has cut its rating for the FTSE 250-listed firm to ‘underperform’ from ‘hold and chopped its target price to 895p from 1,074p after lowering its earnings per share forecasts
In late morning trade, Hikma shares were down 6.5%, or 69.5p at 1,005.5p

Hikma Pharmaceuticals PLC (LON:HIK) was the biggest mid-cap casualty today after US broker Jefferies International downgraded its rating for the generics drugmaker as it thinks the market is likely to be disappointed by the group’s full year outlook.

Jefferies has cut its rating for the FTSE 250-listed firm to ‘underperform’ from ‘hold and chopped its target price to 895p from 1,074p after lowering its earnings per share forecasts.

READ: Jefferies International calls the floor on Hikma Pharma shares following profit warning slide

In late morning trade, Hikma shares were down 6.5%, or 69.5p at 1,005.5p.

In a note to clients, the US broker’s analysts  said: “We take a directional view into FY as believe the street is likely to be disappointed by HIK's FY outlook and we anticipate some Roxane write-downs to impact sentiment.”

They cut their 2018 EPS estimates by around a further 7% after analysing the group’s most recent interim management statement and also assume a more cautious sum-of-the-parts stance.

The analysts noted that Hikma has previously placed the emphasis on cash-flow rather than growth for its branded business as hospitals have been slowing purchases and volatile foreign exchange movements has impacted reported growth.

They believe the market continues to be too bullish for this segment.

View full HIK profile View Profile

Hikma Pharmaceuticals Timeline

Related Articles

Picture of growing facility
May 07 2018
Establishing a vertically integrated business model provides THC with the ability to optimise efficiencies in the manufacturing process.
June 21 2018
Genedrive has signed sales agreement with Sysmex Corporation for the distribution of the HCV ID to EMEA and Asia Pacific and with Mumbai- based ARKRAY to distribute the kit in India
surgeons working
September 03 2018
Chief executive Steve Couldwell also told investors the regenerative medicines specialist had identified a number of potential new commercial opportunities it was “actively pursuing”

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use