In a report released today, Jason Gerberry from Bank of America Securities reiterated a Buy rating on Teva Pharmaceutical (TEVA – Research Report), with a price target of $14.00.
Jason Gerberry has given his Buy rating due to a combination of factors including Teva Pharmaceutical’s potential to achieve low single-digit growth without depending on uncertain prospects. His analysis indicates that despite a high single-digit base business erosion, the upcoming generic versions of Sandostatin LAR and additional sales of generic Revlimid are likely to more than compensate for the revenue decline. Furthermore, Gerberry’s confidence is bolstered by the expectation of growth in Teva’s non-US generics and net brand growth, particularly in central nervous system brands, which could lead to at least a 3% increase in business for 2024, exceeding consensus estimates.
Additionally, Gerberry’s valuation includes the promising Phase 2 TL1a program for inflammatory bowel disease, which Teva is developing in partnership with Sanofi. He assigns significant value to this program based on its potential and supportive preliminary data, further justifying the Buy rating. The anticipated positive outcome from the Phase 2 trials, expected in the first half of 2025, could lead to further valuation increases for Teva’s stock. Gerberry’s report reflects a calculated assessment of Teva’s product pipeline, financial outlook, and strategic partnerships, resulting in an updated price objective of $14 per share.
Gerberry covers the Healthcare sector, focusing on stocks such as Exelixis, Xenon, and Arcellx Inc. According to TipRanks, Gerberry has an average return of 1.1% and a 46.68% success rate on recommended stocks.
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Teva Pharmaceutical (TEVA) Company Description:
Teva Pharmaceutical Industries Ltd. engages in the development and production of medicines. Its products include medicines for cardiovascular diseases, pain relievers, obesity, cancer and supportive care, infectious diseases and human immunodeficiency viruses, and colds and coughs. The company was founded in 1901 and is headquartered in Petah Tikva, Israel.
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