AI
Thursday, August 01, 2002 3:56:16 PM
TEVA.. posted something on briefing.com that call for higher prices about 7 points later than our call. This is from the same folks that brought you the NVDA recommendation 1 hour before the shortfall.. careful. No offense but where were they 4 days from their earnings report??? and with a stochastic of 96.50???
Teva Pharmaceutical (TEVA) 66.46 -0.24: Shares of Teva have returned about 5% since we initially reviewed them in late October. Admittedly, that's not exactly a home run, yet keep in mind the Nasdaq is off nearly 24% over the same time frame. On a relative basis, we'll take that 5% and we also like its current outlook based on more recent developments. Earlier this week, Teva reported a 44% rise in second quarter earnings to $0.68 per share, exceeding the consensus by six cents. The strong results were driven by higher gross margins (43.2% versus 39.9%) due to a favorable product mix and successful price increases on several older generic products. Yet perhaps more importantly, management guided higher going forward. The company now sees third quarter earnings of "at least $0.68 per share" versus the previous consensus estimate pegged at $0.64 per share. So it doesn't take a rocket scientist to ascertain that Teva has some good looking fundamentals -- solid numbers on a stand alone basis, and particularly strong relative to the broader markets. Teva has grown earnings by 40% on average over the past three years which makes its three-year projected CAGR (compound annual growth rate) of 20%-25% appear well grounded in reality. Assuming the company hits its fiscal 2003 earnings target of $3.22, and can sustain a trailing multiple of 25.0x -- a valuation which would likely appear low in a stronger market -- its 18-month price target comes in somewhere around $80 per share. On a quick technical note, look for a notable near-term move higher on any close above 67.50. Teva Pharmaceutical remains a Briefing.com Growth Core holding. -- Mike Ashbaugh, Briefing.com
Teva Pharmaceutical (TEVA) 66.46 -0.24: Shares of Teva have returned about 5% since we initially reviewed them in late October. Admittedly, that's not exactly a home run, yet keep in mind the Nasdaq is off nearly 24% over the same time frame. On a relative basis, we'll take that 5% and we also like its current outlook based on more recent developments. Earlier this week, Teva reported a 44% rise in second quarter earnings to $0.68 per share, exceeding the consensus by six cents. The strong results were driven by higher gross margins (43.2% versus 39.9%) due to a favorable product mix and successful price increases on several older generic products. Yet perhaps more importantly, management guided higher going forward. The company now sees third quarter earnings of "at least $0.68 per share" versus the previous consensus estimate pegged at $0.64 per share. So it doesn't take a rocket scientist to ascertain that Teva has some good looking fundamentals -- solid numbers on a stand alone basis, and particularly strong relative to the broader markets. Teva has grown earnings by 40% on average over the past three years which makes its three-year projected CAGR (compound annual growth rate) of 20%-25% appear well grounded in reality. Assuming the company hits its fiscal 2003 earnings target of $3.22, and can sustain a trailing multiple of 25.0x -- a valuation which would likely appear low in a stronger market -- its 18-month price target comes in somewhere around $80 per share. On a quick technical note, look for a notable near-term move higher on any close above 67.50. Teva Pharmaceutical remains a Briefing.com Growth Core holding. -- Mike Ashbaugh, Briefing.com
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