In late morning trading, Hikma shares topped the FTSE 250 leaderboard, up 15.7% at 1,074.50p.
In a note to clients, analysts at Citigroup upgraded their stance on the generic drugs group to ‘buy’ from ‘neutral’ with a new price target of 1,250p.
They said: “While the outlook for the US Generics industry and Hikma, in particular, remains challenging, we argue this is fully reflected in the share price.”
The analysts added: “The arrival of a new CEO points to guidance being set conservatively. With short interest still relatively high, we like the risk/reward and upgrade to Buy.”
Meanwhile, fellow US investment bank Jefferies upgraded its stance on Hikma to ‘hold’ from ‘underperform’ with an increased target price of 997p from 895p.
Jefferies analysts said they "believe that our stress case to further downside is now unlikely and also that sentiment is now skewed to the upside.”
They added; “Despite challenging industry fundamentals persisting into 2018, we believe guidance gives a floor to expectations, especially in US Gx (generics).