MARKET TALK: Royal Bank of Scotland Starts Hikma Pharma At Hold

6th Jul 2010 07:53

0653 GMT [Dow Jones] Royal Bank of Scotland initiates coverage on Hikma Pharmaceuticals (HIK.LN), with a hold rating and 750p target price. "Our optimistic forecasts reflect Hikma's strong position in MENA [Middle East and North Africa] and its strategy of globalizing the platform, which should allow it to compete effectively in the US and Europe," it says. However, sees execution risk associated with the successful implementation of the global platform strategy, and with structuring value-accretive deals in an increasingly competitive M&A environment in the MENA region. "We believe the current valuation fairly reflects our (and consensus) sales and earnings growth estimates. We await more clarity on execution risks before re-considering our stance," it adds. Shares closed at 688p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 06, 2010 02:53 ET (06:53 GMT)