The Top 4 Best Analyst Coverage on Teva Pharmaceutical Industries Ltd (ADR) (TEVA)


Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is slated to announce second quarter 2015 earnings results on Thursday, July 30, before market open. The company released preliminary Q2 results on July 27, estimating $4.97 billion in revenue and non-GAAP earnings of $1.43 per share. The preliminary earnings raised the company’s full-year 2015 EPS guidance to be in the range of $5.15 to $5.40, up from the previous range of $5.05 to $5.35. Additionally, Teva announced plans to acquire Allergan Generics for $40.5 billion. Teva expects the deal to benefit its financials by achieving $1.4 billion in cost-saving synergies within two years after the deal closes. This news comes as a surprise as Teva has relentlessly been attempting to acquire Mylan Pharmaceuticals. A handful of Wall Street analysts have weighed in on Teva Pharmaceutical ahead of the company’s earnings and in light of its acquisition announcement. Here are the top 4 analysts who cover Teva:

1. Liav Abraham of Citigroup most recently reiterated a Buy rating on Teva on July 27 with a price target of $70 in light of the company’s acquisition announcement. Abraham believes the merger will allow Teva to “take advantage of a unique opportunity of consolidation in the global generics industry [and] enhance its financial metrics, including cash flows, in order to enable expansion of its branded portfolio in its core areas of expertise.” All in all, the analyst sees the deal as “highly financially compelling, with double-digit returns to shareholders.”

Liav Abraham has rated Teva 6 times since 2013, earning a 100% success rate recommending the stock and a +25.4% average return per TEVA recommendation when measured over a one-year horizon and no benchmark.

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2. Tim Chiang of BTIG last weighed in on Teva on July 7 with a Buy rating and a $77 price target, citing the stock as heavily discounted. Though the analyst forecasts sales of Copaxone, Teva’s drug to treat multiple sclerosis,  “to decline by -16% in 2015 and -18% in 2016, [Chiang believes] this is well factored into the Teva valuation which is heavily discounted, trading at 12x our 15 EPS estimate of $5.13.”

Tim Chiang has rated Teva Pharmaceutical 3 times since 2013, earning a 100% success rate recommending the company and a +23.0% average return per TEVA recommendation when measured over a one-year horizon and no benchmark.

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3. Jason Kolbert of Maxim Group most recently reiterated a Buy rating on Teva on July 27 when he raised his price target on the stock from $64 to $74. The analyst commented on Teva’s acquisition announcement, citing, “This is a smart move by Teva and changes the footprint of the company. Based on our ‘back of the envelope’ calculations, we agree with management’s assessment for accretion especially if cost saves as projected are realized from outlined synergies.”

Jason Kolbert has rated Teva 7 times since 2009, earning an 86% success rate recommending the stock and a +24.2% average return per TEVA recommendation when measured over a one-year horizon and no benchmark.

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4. Jason Gerberry of Leerink Swann maintained an Outperform rating on Teva on July 21 and raised his price target from $72 to $74 “to reflect increased sales [estimates] for TEVA’s SD-809,” a treatment for chorea associated with Huntington’s disease. The analyst notes, “The increase in our ’809 ests is partially offset by out-year reductions to our Copaxone 40mg forecasts to reflect increased generic risk.”

Jason Gerberry has rated Teva 6 times since 2012, earning a 100% success rate recommending the company and a +17.5% average return per TEVA recommendation when measured over a one-year horizon and no benchmark.

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Out of 7 analysts polled by TipRanks, all 7 are bullish on Teva Pharmaceutical. The average 12-month price target for Teva is $75.57, marking a 4.96% potential upside from where the stock last closed. On average, the all-analyst consensus for Teva is Strong Buy.