Monday, November 13, 2017 2:32:40 PM
Patience. I hope TEVA drops to $7. Then I'll feel safe to buy and hold.
Jayson Derrick , Benzinga Staff Writer
November 13, 2017 12:48pm
Teva Pharmaceutical Industries Ltd (ADR)
TEVA's third quarter earnings report disappointed investors, as it included another reduction to its full year 2017 earnings per share and revenue outlook.
The Analyst
JPMorgan's Chris Schott downgraded Teva's stock rating from Neutral to Underweight with an unchanged $11 price target.
The Thesis
The road to Teva's recovery will be long, as there is no "clear fundamental inflection in sight," Schott sad in the downgrade note. (See Schott's track record here.)
Teva's ongoing woes include the following, Schott said:
Challenges in the U.S. generic business, which is unlikely to grow until 2019.
Management already pursued a cost-cutting plan, and the opportunities for incremental expense reductions are limited.
Competition for Copaxone will worsen in 2018.
Profitability erosion could occur in 2018 and 2019 as the company reallocates a portion of Copaxone operating expenditure to the Austedo and CGRP launches.
Teva does have some opportunities to capitalize ahead, including the normalization of costs with non-Copaxone brands that can generate more than $500 million in incremental EBITDA, the analyst said. In addition,Teva's new CEO Kare Schulz brings the necessary experience skills to execute on restructuring opportunities over the years, according to JPMorgan.
The Israeli pharma company lacks the financial flexibility to pursue any new strategic plans, Schott said.
There are no "quick fixes" available for Teva and the stock is "fairly valued," even though some of its peers are trading at a "robust" valuation, the analyst said.
Price Action
Shares of Teva were trading lower by more than 1 percent Monday morning and are down nearly 70 percent since the start of 2017.
Recent TEVA News
- Teva Announces Long Term Efficacy and Safety of Deutetrabenazine in European Patients with Debilitating Movement Disorder Tardive Dyskinesia • GlobeNewswire Inc. • 09/23/2024 05:00:00 AM
- Teva Presents New Phase 3 Efficacy, Safety and Tolerability Data from SOLARIS Trial Evaluating TEV-‘749 (olanzapine) as a Once-Monthly Subcutaneous Long-Acting Injectable for Adult Patients Diagnosed with Schizophrenia • GlobeNewswire Inc. • 09/21/2024 08:15:00 AM
- New Data Provide Treatment Insights into Options for Switching Adult Patients Diagnosed with Schizophrenia to UZEDY® (risperidone) Extended-Release Injectable Suspension from Perseris® (RBP-7000) • GlobeNewswire Inc. • 09/21/2024 08:10:00 AM
- Teva to Present at the Bank of America 2024 Global Healthcare Conference • GlobeNewswire Inc. • 09/11/2024 08:30:00 PM
- GameStop plunges 11% on stock offering, DJT drops post-debate, GSK fails shingles vaccine trial • IH Market News • 09/11/2024 10:25:41 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/04/2024 11:40:42 AM
- Teva to Present at the Morgan Stanley 22nd Annual Global Healthcare Conference • GlobeNewswire Inc. • 08/26/2024 09:00:00 PM
- Form 144/A - Report of proposed sale of securities: [Amend] • Edgar (US Regulatory) • 08/14/2024 11:06:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:09:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:06:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/13/2024 08:02:28 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/09/2024 07:59:27 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/31/2024 08:06:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/31/2024 11:00:57 AM
- Teva Announces Strong Growth in Second Quarter Revenues mainly driven by Generics Products in All Regions and AUSTEDO®; Raises 2024 Financial Guidance • GlobeNewswire Inc. • 07/31/2024 11:00:00 AM
- US Index Futures Up Ahead of Fed Decision; Oil Prices Surge Amid Middle East Tensions • IH Market News • 07/31/2024 10:01:30 AM
- Teva and Sanofi Announce Accelerated Timeline for Anti-TL1A Phase 2b Program in Patients with Inflammatory Bowel Disease • Business Wire • 07/25/2024 05:30:00 AM
- Teva Announces First Phase 3 Evidence of Efficacy and Safety of an Anti-CGRP Monoclonal Antibody in Children in AJOVY® (fremanezumab) SPACE Trial for Prevention of Episodic Migraine • Business Wire • 07/18/2024 12:30:00 PM
- Teva to Host Conference Call to Discuss Second Quarter 2024 Financial Results at 8 a.m. ET on July 31, 2024 • Business Wire • 07/02/2024 10:00:00 PM
- Les nouvelles données portant sur AJOVY® (fremanezumab) dans la prévention de la migraine remettent en question les pauses thérapeutiques • Business Wire • 06/28/2024 10:34:00 PM
- Neue Daten zu AJOVY® (Fremanezumab) zur Migräneprävention stellen Behandlungspausen in Frage • Business Wire • 06/28/2024 07:41:00 PM
- New AJOVY® (fremanezumab) Migraine Prevention Data Challenges Treatment Pauses • Business Wire • 06/28/2024 03:30:00 PM
- Teva Reaches Agreement With the Israel Tax Authority to Resolve All Pending Litigation for the Company's Taxable Years 2008-2020 • Business Wire • 06/25/2024 12:00:00 PM
- Teva Announces Launch of Authorized Generic of Victoza® (liraglutide injection 1.8mg), in the United States • Business Wire • 06/24/2024 01:50:00 PM
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