Hikma Pharmaceuticals is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The company’s fundamentals are still strong. Sales progression is encouraging and the group benefits from an interesting profitability with a net margin at 15.5% last year. Analysts from Thomson Reuters consensus keep revising upward their EPS estimates.

Technically, the consolidation phase engaged when touching GBp 1780 has brought the stock back to attractive prices. Moving averages on all time scales are well oriented and suggest a renewed bullish trend for a return towards GBp 1780.

In consequence, investors can take a long position in Hikma Pharmaceuticals with a target price at GBp 1780. This level is the long term resistance. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be set under the short term support at GBp 1639.