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
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 12:03:34 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 12:00:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:41:32 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:38:31 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:27:06 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:23:46 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:20:44 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:17:48 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 11:14:54 AM
- Adobe Soars 15% Pre-Market; Visa and Mastercard Encounter Hurdles in $30 Billion Agreement, and More • IH Market News • 06/14/2024 11:21:47 AM
- Teva to Present at the Goldman Sachs 45th Annual Global Healthcare Conference • Business Wire • 06/04/2024 08:05:00 PM
- New Data Provide Schizophrenia Treatment Insights into Switching to UZEDY® (risperidone) Extended-Release Injectable Suspension from Invega Sustenna® (paliperidone palmitate) • Business Wire • 06/01/2024 06:25:00 PM
- Teva Presents First Real-World Data from the IMPACT-TD Registry Study at Psych Congress Elevate 2024 • Business Wire • 06/01/2024 06:20:00 PM
- Teva Announces AUSTEDO® XR (deutetrabenazine) Extended-Release Tablets Now U.S. FDA Approved as a One Pill, Once-Daily Treatment Option for Clinically Therapeutic Doses (24–48 mg/day) • Business Wire • 05/29/2024 10:38:00 PM
- Teva and Alvotech Announce SIMLANDI® (adalimumab-ryvk) Injection Now Available in the U.S. • Business Wire • 05/21/2024 12:25:00 AM
- Teva and Alvotech Announce SIMLANDI® (adalimumab-ryvk) Injection Now Available in the U.S. • GlobeNewswire Inc. • 05/21/2024 12:25:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/15/2024 12:36:41 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/15/2024 12:30:32 PM
- Teva Announces Appointment of Matthew Shields to Executive Vice President, Teva Global Operations • Business Wire • 05/15/2024 12:15:00 PM
- Bain Capital in Talks to Acquire PowerSchool; Blackstone Emerges Victorious in Hipgnosis Bidding War, and More News • IH Market News • 05/09/2024 11:53:19 AM
- Teva Reports First Quarter 2024 Financial Results and Reaffirms 2024 Financial Outlook • Business Wire • 05/08/2024 11:00:00 AM
- Teva and Medincell Announce Positive Phase 3 Efficacy Results from SOLARIS Trial Evaluating TEV-‘749 (olanzapine) as a Once-Monthly Subcutaneous Long-Acting Injectable in Adults with Schizophrenia • Business Wire • 05/08/2024 10:30:00 AM
- Teva to Present at the 2024 Bank of America Healthcare Conference • Business Wire • 05/02/2024 10:30:00 PM
- Teva’s 2023 Healthy Future Report Showcases Renewed Sustainability Strategy and Ambitious Targets • Business Wire • 05/02/2024 12:30:00 PM
- U.S. Commercialization Agreement with Quallent to Drive Patient Savings with First High-Concentration Citrate-Free Interchangeable Biosimilar to Humira® (adalimumab) • Business Wire • 04/30/2024 08:00:00 AM
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