Hikma Pharmaceuticals shares remained under pressure on Friday morning, building on Thursday’s steep sell-off that saw the stock tumble more than 7% after the company trimmed its injectables margin outlook. The rout accelerated yesterday when prices broke below the £18.00 mark, triggering stop-loss orders and forcing a rapid intraday slide. By mid-morning in London today, the stock was still struggling to recover, trading near £17.46 as sellers stayed active and buyers remained cautious.
Brokers Trim Targets, Sentiment Stays Fragile
Several brokers have moved quickly to cut near-term target prices, warning that Hikma’s valuation could stay capped until there is firmer visibility on margin recovery. The downgrade cycle has added to selling pressure, keeping momentum skewed to the downside.
Some analysts see a silver lining for long-term investors. Supported by Hikma’s strong cash generation, healthy balance sheet, an expanding footprint in emerging markets as reasons the current dip should be a buying opportunity. Still, sentiment is fragile ahead of the next trading update, where management will need to convince investors it can stabilise profitability in its injectables unit.
Hikma Technical Analysis
- Current price: £17.46
- Immediate resistance: £17.80, then £18.20
- Support zones: £17.20, followed by £16.60
Outlook: Volatility Likely to Persist
For now, Hikma’s share price trajectory hinges on how quickly management can restore confidence in injectables margins while keeping revenue momentum in its other divisions. Until then, rallies are likely to meet resistance, with traders watching support levels for any signs of institutional accumulation. A credible roadmap for margin recovery could be the spark needed to pull the stock back into favour, but without it, the choppy trade looks set to continue into the weeks ahead.
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