Lower bar, improved setup — reiterate Buy

Research evidence excerpt

Lower bar, improved setup — reiterate Buy

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Buy Hikma 22 June 2026

Europe Reuters Bloomberg Rating Buy

United Kingdom HIK.L HIK LN Price target (GBX) 1,950 Price at 19 Jun 26 1,457

52-week range 2,080 – 1,191

Pharmaceuticals

Pharmaceuticals Valuation & Risks

Kane Slutzkin, CFA

Summary: Reiterating Buy — rebuilding credibility, risk/reward very compelling Research Analyst

+44-20-754-54624 Hikma has had a difficult 12 months, with multiple profit warnings and estimate

resets undermining investor confidence. We do not underestimate the credibility

gap that remains. However, expectations now appear materially reset, April’s in-

line update marked a first step towards stabilisation, and valuation appears to

discount a more impaired business than we believe is the case. With expectations

reset and valuation remaining at a material discount to history and peers, we

believe risk/reward is very compelling and reiterate Buy.

Operations: Lower bar in Injectables; Branded resilience; Rx upside

Injectables remain the key area of investor focus following a difficult period.

However, the division is now being judged against a more achievable base, with

product-level data suggesting competitive positions remain intact. Elsewhere,

Branded continues to provide resilient, cash-generative exposure despite MENA

macro risks, while Rx is emerging as a more credible source of upside. Overall,

the mix appears more balanced than implied by current sentiment.

Estimates: Reset largely complete; focus shifts to delivery

After repeated downgrades, consensus now sits towards the lower end of

management guidance. This does not remove execution risk, but it materially