Jefferies lifts Hikma target as CMO deal underpins growth story

What Brokers Say Health Written by: Ian Lyall 15:02 Tue 25 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Hikma Pharmaceuticals PLC ( LSE:HIK OTC:HKMPF ) View Price & Profile Jefferies lifts Hikma target as CMO deal underpins growth story Published: 15:02 25 Aug 2026 BST Jefferies has raised its price target on Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) to 2,025p from 1,870p, pointing to the expanding contract manufacturing business as the source of the upgrade. The 'buy' rating is unchanged, with the new target implying 24% upside from Tuesday's share price of 1,633p (flat). Analyst James Vane-Tempest nudged medium-term revenue and earnings estimates up by 1% to 2%, encouraged by the contract manufacturing organisation, or CMO, arm and its longer-term potential. The broker remains cautious on the strategic decision relating to sodium oxybate, the generic sleep-disorder treatment that has driven recent prescription drug momentum. Management expects any future headwind from that product to be offset by CMO expansion, with commercial production on a large contract due to begin in 2027. Hikma is targeting roughly 20% of prescription drug revenue from contract manufacturing by 2030. The company reiterated full-year group guidance at its interim results while raising branded guidance to the top end of the range. Jefferies attributes that to tender timing and temporary stockpiling in the Middle East and North Africa following geopolitical disruption. The broker cautions against reading the first-half performance as a run rate. Marketing and promotional activity was deferred by travel restrictions and will resume in the second half, meaning both revenue and profitability are weighted towards the first six months. Management has flagged mid to high single-digit branded revenue growth and operating margins in the mid-20s as the more sustainable trajectory. The injectables franchise, a persistent drag on the shares, has stabilised. Around 80% of Vanco Ready customers have fully or partially switched to Tyzavan, and Jefferies expects a return to top-line and profit growth in that division from 2027. Jefferies forecasts revenue of $3.46 billion this year, broadly in line with consensus, rising to $3.57 billion in 2027, about 1% below the market. The shares have traded between 1,187p and 1,865p over the past year. Continue reading