The Point for Europe

Research evidence excerpt

The Point for Europe

growth print (particularly in CIB) will reassure, we also note flattish markets

revenues over time, so we do question the extent to which the fundamental story

has changed today relative to the share price reaction. Reiterate Neutral.

Shrey Srivastava | Guru Prasad Chowdhary | Andrew Coombs, CFA

Hikma Pharmaceuticals PLC (HIK.L) - Strategy improving, entry point

compelling; initiate at Buy

We initiate coverage of Hikma with a Buy rating and a 12-month SOTP-based price

target of £17, implying c.14% share price return. Hikma is a business in strategic

reset, with the right priorities: shifting R&D towards more differentiated assets,

investing in US manufacturing for own products and contract manufacturing

(CMO), and sustaining OUS momentum, especially in MENA where Hikma’s

competitive moat is wide. The financial inflection remains execution-dependent,

with Bedford manufacturing plant coming online in 2028 among the most

important catalysts, but we see the current valuation as providing a compelling

entry point. We forecast c.4% revenue, c.6% adj. EBIT, and c.8% adj. EPS CAGR

(2026-30E), with c.100bps of adj. EBIT margin improvement. A combination of

c.5% dividend yield, low multiple vs. history, a strong balance sheet, and potential

for further buyback (not in our model) provides additional support.

Giang H Nguyen, CFA | Veronika Dubajova | Harry Shrives Ph.D., CFA

Company

AstraZeneca PLC (AZN.L) - Positive sac-TMT lung cancer data further validates

potential for Datroway

Kelun announced positive headline results from the Chinese PIII OptiTROP-

Lung06 study for it/Merck's TROP2-targeted ADC, sac-TMT, highlighting stat sig

and clinically meaningful improvement in PFS over SoC

(Keytruda+pemetrexed+platinum-chemo) in 1L non-squamous PD-L1-negative