Leader: Teva is a a dual-listed hedge
Leader Capital Markets: The analysts’ consensus for Teva is high.
Gil Shlomo 30 Jul 07 16:20
Leader Capital Markets Ltd. has published a review of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) ahead of the publication of the company’s financial report for the second quarter on August 1. The analysts’ consensus is that the company will post earnings per share of $0.56 on $2.28 billion revenue. Leader analyst Yoav Burgan is more cautious, saying that the “consensus is high,” although he gives Teva a “Buy” recommendation with a target price of $54.
Like earlier reviews of Teva by WR Hambrecht, Bear Stearns, and Goldman Sachs, Leader Capital Markets gives pride of place to generic Lotrel, a treatment for high blood pressure. Teva’s exclusivity period for marking generic Lotrel is expected to cause the company’s management to raise its guidance for 2007 as a whole. Burgan says, “If that doesn’t happen, the share might flag in the short term.”
Burgan adds that at a time when stock prices in Israel and on international market are slumping, Teva gives investors “a dual-listed hedge”, given that its volatility (beta) compared with the Tel Aviv 100 index is less than 0.1% and less than 0.6% compared with Nasdaq over the past decade. A share’s volatility is often compared with the volatility of the stock market; a figure of almost zero means low correlation between the share and the stock market.
Published by Globes [online], Israel business news - www.globes.co.il - on July 30, 2007
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