Broker snap: Jefferies hails injectables performance at Hikma

16th Aug 2012 11:25

Jefferies has maintained its 'buy' rating and 860p target price for pharmaceuticals group Hikma after the firm's first-half results came in above forecasts, driven by a better-than-expected performance from the Injectables division.Group sales gained 34.8% to $532.3m in the first six months of the year, above Jefferies' estimate of $509.9m and consensus predictions of $503.5m. Injectables sales of $225.2m, up 94% year-on-year, came in ahead of the broker's $210.8m estimate.Hikma also reiterated its full-year guidance and said that the Injectables performance will be sustained in the second half.Jefferies said: "We expect the market to focus on 'sustained 2H' injectables performance in 2H rather than lower US generics guidance given we estimate this division is only 4% of adjusted earnings before interest and tax. "A 21.1% branded margin might disappoint some in 1H, but we note a 2H seasonal weighting, above consensus branded sales in 1H and this in our view is more than offset by injectables."By 11:23, shares were up 5.72% at 766.5p.BC