This FTSE 100 stock could be poised for a whopping 40% growth in 2026, or more
Hikma Pharmaceuticals (LSE: HIK) was far from the best FTSE 100 performer in 2025. Over the past 12 months, the price has fallen more than 25%, and over five years, we’re looking at a 35% decline. But if we turn to forecasts for 2026, wow, what a difference a year could make.
The current analyst consensus indicates a share price target 40% ahead of where it is at the time of writing. And the top of the range even raises the possibility of a 60% profit! These are the kind of gains we usually associate more with smaller-cap stocks than the giants in the top London index.
So are City folk living in dreamland, or might their optimism be justified? Let’s take a look.
What it does
Hikma makes a range of generic medicines, which are essentially copycat drugs produced after the original developers’ patents expire. Hikma’s market is widely international. And it covers branded drugs, oral medications, and other products.
But injectables contribute most to Hikma’s revenue, accounting for $683m in the first half of the current year (41% of the total). These are widely used in the US, with Hikma one of the biggest three suppliers.
Demand looks likely to get a boost from weight loss drugs. The active stuff in Ozempic and Wegovy will soon be hitting expiry dates in a number of countries — China, Canada, UAE etc. And demand in the Middle East is especially high.
What next
All this leads to some impressive forecasts for the next few years. Analysts expect to see earnings per share (EPS) climbing over 50% between 2024 and 2027. If they’re right, that could put Hikma shares on a price-to-earnings (P/E) ratio by then of only around 8.5. That’s way below the long-term FTSE 100 average P/E of closer to 15.
Speaking of the FTSE 100, Hikma currently has the lowest market-cap in the whole index — and there are 10 bigger stocks leading the FTSE 250 and vying to take its place. Unless something changes, Hikma might not be in the top index for much longer. It’s been in and out a few times already, and we’d expect tracker funds to sell if it exits again.
November’s trading update wasn’t exactly sparkling either. Everything was apparently going as expected in the second half. But the company only expects between 7% and 9% revenue growth for the full year. Things will have to crank up a bit if those analyst forecasts are to be achieved.
Buy in 2026?
So a couple of things could go against Hikma in the year ahead. With US international trade so uncertain these days, I’m also wary of investing in a company doing so much business there.
Still, those forecasts are tempting. And if the share price targets are close, Hikma has to be a growth stock to consider in 2026.
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Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Hikma Pharmaceuticals Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
