Top analyst Irina Rivkind Koffler at Mizuho is out today sounding the alarm on Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) in a research report today, unimpressed with the firm’s “insufficient pipeline growth,” concerned it suffers under the weight of debt struggles. Therefore, the analyst enters with a new bearish perspective, downgrading from Neutral to an Underperform rating on shares of TEVA while chopping the price target from $40 to $27, which represents a just under 17% downside from where the stock is currently trading.

“We still see room for downside over the next year following significant volatility in TEVA […]” criticizes Koffler, who not only is skeptical on TEVA’s Respiclick portfolio, but is not confident on its “commercial viability.” Additionally, the analyst points out challenges lie ahead with asset sales and with this in mind, she does not hold a great deal of hope for new leadership to save Teva.

“We are late again with this second downgrade but feel it is warranted for the following reasons: 1) There could be additional downside to the stock from an at-risk Copaxone launch any time in 2017; 2) Teva’s interim CEO may further reduce the 2017 outlook on Monday’s earnings call and there could be additional mgmt. departures; 3) Because of the back-loaded timing of its anticipated exclusive generics launches and uncertain execution across 40-60 smaller generic launches in a stressed organization, Teva may be forced to sell off assets or cut its dividend earlier in the year to meet aggressive debt repayment targets within 18 months after closing the Actavis deal; 4) We are not expecting an influx of new shareholders in front of Allergan’s planned sale of over 100M Teva shares after its August lock-up period expires. For these reasons, we expect the stock to decline […]” Koffler concludes.

Irina Rivkind Koffler has a very good TipRanks score with a 53% success rate and a high ranking of #95 out of 4,395 analysts. Koffler earns 19.6% in her annual returns. However, when recommending TEVA, Koffler loses 22.4% in average profits on the stock.

TipRanks analytics exhibit TEVA as a Buy. Out of 21 analysts polled by TipRanks in the last 3 months, 12 are bullish on Teva stock, 8 remain sidelined, and 1 is bearish on the stock. With a return potential of nearly 30%, the stock’s consensus target price stands at $41.83.

More stocks covered by top performing analysts can be found here.