On Thursday, UBS analyst Ashwani Verma increased the price target for Teva Pharmaceutical Industries Ltd (NYSE:TEVA) to $30 from the previous $28 while keeping a Buy rating on the shares. Verma highlighted Teva as a top pick for 2025, noting the stock's impressive performance with a rise of over 111% in 2024. According to InvestingPro data, TEVA has delivered an 83.57% return over the past year and is currently trading near its 52-week high of $22.80, with analyst targets ranging from $18 to $30. Despite a lighter catalyst outlook for 2025 compared to the previous year, Verma believes Teva will continue to attract long-term investors following a period of significant de-risking. This view aligns with InvestingPro's analysis, which assigns Teva a GREAT overall Financial Health score, particularly strong in price momentum. For deeper insights into Teva's valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Teva's stock has undergone a transformation in the eyes of long-only investors (LOs), according to Verma. He explained that the rally in 2024 was largely driven by hedge funds, and now with the company's reduced risk, LOs are more comfortable increasing their exposure. Verma anticipates that Teva will announce the sale of its API division with its fourth-quarter results next week, which could provide further clarity and value to investors.
UBS has made adjustments to Teva's fourth-quarter 2024 estimates, slightly raising revenue projections but lowering EBITDA to $4.06 billion and $1.32 billion, respectively, from the previous $3.99 billion and $1.46 billion. This revision reflects stronger sales in the U.S. for generic drugs and Austedo, but a decrease in gross margin and EBITDA percentage. Current data from InvestingPro shows trailing twelve-month revenue of $16.77 billion with a gross profit margin of 49.84%, while EBITDA stands at $4.79 billion.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.