Deutsche Bank has raised its target price for Hikma Pharmaceuticals PLC (LSE:HIK, OTC:HKMPF) to 2,050p from 1,950p, reiterating its 'buy' rating on the FTSE 100 drugmaker.

Kane Slutzkin said Hikma delivered a substantial beat at the half-year stage, driven primarily by the branded division, yet left full-year guidance largely unchanged.

The immediate question is whether management is simply being conservative.

Slutzkin argued the strength of the first half materially lowers the execution hurdle required to hit the midpoint of guidance, while leaving management flexibility in the second half as it rebuilds credibility around its forecasting.

The bank now assumes full-year core operating profit lands at that midpoint, a figure it continues to regard as cautious.

That drives a 4% upgrade to its earnings-per-share estimate for the current financial year.

The higher target also reflects a richer multiple applied to the branded business within Deutsche Bank's sum-of-the-parts model, which values each division separately before adding them together.

Valuation remains the crux of the argument, with the stock trading on roughly 10 times earnings.

Slutzkin described that as very compelling for a company that appears to be steadily restoring confidence in its numbers.

In afternoon trading, the shares were off 1.4% at 1,654p.