Broker snap: Jefferies cuts target for Hikma but stays upbeat

17th Apr 2013 11:16

Jefferies has cut its price target for pharmaceuticals firm Hikma from 1,150p to 1,040p after the company's decision to hold on to its global injectables business.Hikma said on Wednesday that it has seen a "significant amount of interest" in the injectables business by third parties.However, the firm decided that it is "uniquely positioned to create significant further value by retaining this business and leveraging its high quality manufacturing facilities, broad product portfolio, attractive R&D pipeline and global distribution platform".Jefferies said that its previous 1,150p price target had included a 50% possibility of a sale of the business."Hence we lower our price target to 1,040p to reflect just our fundamental value of the shares." A 'buy' rating for the stock was maintained.The stock was down 5.48% at 931p by 11:22.BC