Hypera shares have fallen 20% this year; Itaú BBA analysts say the company is one of the most solid cases in the sector and reiterate their buy for the shares (Image: Disclosure/Hypera Pharma)
In the wake of revisions to estimates for next year, Itaú BBA has redone the calculations for projections for Hypera (HYPE3) The result: the company's shares remain with a buy recommendation.
The bank adjusted the target price from R$35 to R$37 for the end of 2025, which represents a potential increase of 30.8% compared to the closing price last Thursday (19).
In Itaú BBA's assessment, Hypera is one of the cases “more solid “in the long term, being a pharmaceutical company with a strong portfolio and “decent” prospects for generating cash in the long term.
This Friday (20), HYPE3 shares led the losses of Ibovespa (IBOV) in the first hour of trading, amid adjustments after the increase in the basic interest rate, Selic.
At around 11:30 am, the shares were down 1.84%, at R$27.76. Follow in real time.
So what explains the stock drop?
Year-to-date, HYPE3 has fallen by 20%.
For Itaú BBA analysts, uncertainty around a clearer recovery in the sector and discussions about higher taxes are the factors that have been putting pressure on the share price in recent months.
They also consider that the challenges faced by the pharmaceutical industry were more “severe” than initially anticipated by the bank — which resulted in greater pressure on the company’s operational performance compared to previous quarters.
“The increase in demand for generic products, the decrease in cases of respiratory syndromes and intensified competition were the main challenges in 2024, impacting the ability to meet the guidance of EBITDA (earnings before interest, taxes, amortization and depreciation)”, write analysts Vinicius Figueiredo, Lucca Marquezini and Felipe Amâncio, who signed the report.
The reasons to buy Hypera
In Itaú BBA's accounts, the company's shares are traded at a multiple of 11.6x the price-to-earnings (P/E) ratio — which supports the buy recommendation for the shares.
The bank still projects revenue growth of approximately 9% in 2025 and a 9.5% increase the following year.
The net profit projection is R$1.9 billion next year, considering the ICMS tax benefit — a 9% downward revision in relation to previous estimates.