Tonix Pharmaceuticals stock halted ahead of FDA approval news
Investing.com - Deutsche Bank (ETR:DBKGn) has lowered its price target on Hikma Pharmaceuticals Plc (LON:HIK) (OTC:HKMPF) to £28.50 from £31.00 while maintaining a Buy rating following the company’s mixed first-half results.
The pharmaceutical company reported a slight beat on overall revenue and core EBIT (earnings before interest and taxes), but posted a mid-single-digit miss in its injectables division, which currently receives heightened market attention compared to other segments.
Deutsche Bank noted that Hikma issued lower margin guidance for its injectables business, though this was partially offset by a small increase in revenue and margin expectations for its Branded division, resulting in a very low-single-digit reduction to fiscal year 2025 core EBIT forecasts.
The revised Deutsche Bank estimates now fall just below the midpoint of Hikma’s guided range, with the analyst acknowledging that near-term catalysts for the stock may be limited.
Hikma shares had weakened prior to the results announcement and have declined by a mid-to-high single-digit percentage since the earnings release, leaving the stock trading at approximately 10 times forward price-to-earnings ratio, representing a significant discount to European Specialty Pharmaceutical (TADAWUL:2070) peers that trade above 15 times earnings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.