Barclays downgrades Hikma to ‘equalweight’ on Generics concerns
Barclays downgraded Hikma Pharmaceuticals on Friday to ‘equalweight’ from ‘overweight’ and cut the price target to 1,750p from 2,250p as it said a lack of visibility in the generics division was a real concern.
On Thursday, Hikma downgraded revenue guidance for the generics segment to between $650m and $675m, from between $710m and $750m.
"Yes, Generics is a small part of Hikma’s business, but it's been dominating the narrative so far this year," Barclays said.
"With yet another downward revision to numbers and without a permanent CEO, we think it is difficult to put new money into the name."