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On Tuesday, RBC Capital Markets adjusted its outlook on Hikma Pharmaceuticals (OTC:HKMPY) Plc, raising the company’s price target from GBP25.25 to GBP26.25 while maintaining an Outperform rating. The revision followed Hikma’s recent management meeting in Columbus (WA:CLC), where the company presented mid-term guidance that suggests confidence in its prescription and injectables divisions. This guidance complements the previously positive outlook for the Branded unit shared in late 2024.
Hikma Pharmaceuticals has forecasted an annual revenue growth rate of 6-8% and core operating profit growth of 7-9% over a three-year period. In response to this guidance, RBC Capital has adjusted its financial forecasts towards the lower end of Hikma’s projections, acknowledging that some business development activities might be necessary to achieve the higher end of the growth range.
The updated RBC Capital forecasts include a 9% increase in Hikma’s estimated 2027 EBIT (Earnings Before Interest and Taxes), which underpins the new price target. The analyst at RBC Capital expressed a conviction in the stock’s potential, noting a 27% upside from the current levels, and reiterated the Outperform recommendation for investors.
Hikma’s positive mid-term guidance is a reflection of the company’s growing optimism, especially within its Rx and Injectables businesses. The pharmaceutical company’s management has effectively conveyed its strategic direction and growth expectations to investors, contributing to the analyst’s favorable outlook on the stock’s future performance.
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