Berenberg Bank Reiterates Hikma Pharmaceuticals (HKMPF) Buy Recommendation

Berenberg Bank reiterated a "Buy" recommendation for Hikma Pharmaceuticals (OTCPK:HKMPF) on October 16, 2025, setting an average one-year price target of $34.25/share, which implies a 35.66% upside from its $25.25 closing price, despite projected annual revenue decreasing by 10.45% to $2,880MM and non-GAAP EPS at $2.12. Institutional investors have shown increased conviction, with total shares owned by institutions rising by 38.58% to 8.508M shares and the average portfolio weight dedicated to HKMPF increasing by 14.92% over the last quarter, notably with significant stake increases from funds like John Hancock Disciplined Value International Fund and Vanguard Total International Stock Index Fund.

Analysis

Berenberg Bank reiterated a "Buy" recommendation for Hikma Pharmaceuticals (OTCPK:HKMPF) on October 16, 2025, assigning an average one-year price target of $34.25/share. This target implies a significant 35.66% upside from the latest reported closing price of $25.25, suggesting strong conviction despite some underlying financial projections. The analyst's positive outlook contrasts with a projected annual revenue decrease of 10.45% to $2,880MM, alongside a projected non-GAAP EPS of $2.12.

Institutional investor activity also reflects a bullish stance, with total shares owned by institutions increasing by 38.58% to 8.508M shares over the last three months. The average portfolio weight dedicated to HKMPF across reporting funds rose by 14.92%. Notably, John Hancock Disciplined Value International Fund increased its holdings by 62.34% and its portfolio allocation by 83.23%, while Vanguard Total International Stock Index Fund Investor Shares also significantly raised its stake by 88.56%, indicating strong institutional accumulation.

Key Decisions for Investors

• Investors should evaluate the discrepancy between Berenberg's bullish price target and the projected 10.45% decline in annual revenue.
• Consider the strong institutional accumulation, evidenced by a 38.58% increase in shares owned by funds, as a potential indicator of long-term value despite short-term revenue headwinds.
• Monitor Hikma's upcoming earnings reports for insights into cost management and profitability, especially given the projected non-GAAP EPS of $2.12 amidst revenue pressures.