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Hikma Pharma upgraded to ‘overweight’ from ‘equal-weight’ by Morgan Stanley in note highlighting “hidden operating leverage”

The US investment bank's analysts said: “The profit contribution from the launch of gVascepa and gAdvair is not fully appreciated by the market, in our view"

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The analysts upped their target price for the FTSE 100-listed group to 2,660p a share from 2,200p previously

Morgan Stanley has upped its rating for Hikma Pharmaceuticals PLC (LON:HIK) to ‘overweight’ from ‘equal-weight’ after raising its target price in a note highlighting the generics firm’s “hidden operating leverage”.

The US investment bank’s analysts upped their target price for the FTSE 100-listed group to 2,660p a share from 2,200p previously.

READ: Hikma Pharmaceuticals majority shareholder offloads entire stake

In the note to clients, the analysts said: “The profit contribution from the launch of gVascepa and gAdvair is not fully appreciated by the market, in our view.

“Our detailed analysis of the impact of these launches leads us to raise our base case 2022 EBIT by 15%, 12% above consensus.”

In mid-morning trading on Tuesday, Hikma shares were changing hands at 2,216p each, down 0.5% on Monday’s closing price.

Quick facts: Hikma Pharmaceuticals PLC

Price: 2354 GBX

AIM:HIK
Market: AIM
Market Cap: £5.43 billion
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