Teva Pharmaceutical Industries Ltd (TEVA)

[midastouch017]

Leader’s Hershkovitz: Teva models wrong
Leader & Co. still feels that Teva is the most attractive stock on the market.

Eitan Tapiro 8 Aug 06 12:43

Leader & Co. analyst Uri Hershkovitz says that the second quarter financial report published by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) is so strong that it requires a new perspective on the company and the market in general.
”People were expecting earnings per share of $0.46, and Teva clearly beat this. It would appear that the analysts were 40% off in their forecasting, so something must be wrong with their model,” he says.

Hershkovitz adds, “Analysts expected a gross profit margin of 47%, while Teva delivered an impressive 55% in its report. This requires some rethinking on the part of the analysts.” He also says that Leader still feels that Teva is one of the most attractive stocks on Israel’s capital market and has kept his “Buy” rating for the stock with a target price of $45.

Clal Finance Batucha analyst Yisca Erez says Teva produced a very strong financial report. “It exceeded all the optimistic expectations and the next two quarters will probably be just as strong,” she says. “Teva raised its guidance, which is still conservative. This was a rise that everyone expected and hoped for. The company is traded at a multiple of 15 for 2006, which is very low and does not reflect its results or potential.”

Published by Globes [online], Israel business news - www.globes.co.il - on August 8, 2006

Dubi