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>>> Teva Shares Are Getting Obliterated Again After Vicious Investment Bank Downgrade


Teva's stock is crumbling as another analyst slams it with a downgrade.


Kinsey Grant

Aug 4, 2017



https://www.thestreet.com/story/14257367/1/teva-is-cut-after-three-strikes-at-credit-suisse.html?puc=yahoo&cm_ven=YAHOO&yptr=yahoo



Teva Pharmaceutical Industries Ltd. (TEVA) stock tumbled almost 11% Friday morning as Wall Street came down hard on the company.

Credit Suisse analyst Vamil Divan downgraded the Israeli pharmaceutical company to "neutral" from "outperform."

Teva has had "three strikes," Divan wrote, after missing second quarter expectations in earnings reported Thursday. The company lowered its full-year guidance and slashed its dividend, too.

Divan said there are no signs of stabilization for U.S. generic drug price erosion and increased competition doesn't look to be slowing down any time soon.

Divan slashed his price target for Teva to $25 from $39, suggesting Teva stock could fall another 16% from its Friday morning price of $21.13 per share. Teva stock has dipped over 40% since the start of the year.

The Tel Aviv-based generics maker cratered Thursday after cutting its full-year profit and slashing its dividend 75% owing to weaker U.S. markets and the ongoing political turmoil in Venezuela.

For the quarter ending in June 2017, Teva posted a non-GAAP earnings per share of $1.02 per share and booked revenue of $5.7 billion, the company said. Analysts had forecast, on average adjusted EPS of $1.06 on revenue of $5.72 billion.

Others with exposure to the generics industry were also down including Impax Laboratories Inc. (IPXL) declined about 5% on Thursday and continued to fall Friday. Lannett Co. (LCI) was lower by 6% Thursday and traded down almost 4% Friday to $16.17 per share.

Amerisource Bergen Corp. (ABC) stock slid over 10% to $81.48 after the company joined Teva in reporting lackluster revenue last quarter brought down by generic drug price deflation. Amerisource was down another 2% Friday to $80.33 apiece.

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