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What Are Analysts Recommending for Teva Pharmaceutical in 2016?

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Aug. 19 2016, Published 10:25 a.m. ET

Analyst recommendations

Among the 32 brokerage companies surveyed by Bloomberg for Teva Pharmaceutical (TEVA), 74.2% gave it a “buy” rating, and 25.8% gave it a “hold.” No analysts rated it a “sell.”

The consensus 12-month target price for Teva Pharmaceutical is ~$69.52. That’s a rise of 31.0% from $53.08 on August 17, 2016.

If Teva happens to surpass this price target, it may also boost the First Trust Value Line Dividend ETF (FVD). Teva makes up about 0.52% of FVD’s total portfolio holdings.

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Teva Pharmaceutical’s positive analyst recommendations are mainly based on the company’s solid business foundation. Teva has completed several acquisitions in 2014 and 2015. It’s focused on strengthening its generic and specialty drug franchises. It’s also been actively involved in optimizing its operational network and generating cost efficiencies.

Despite the loss of marketing exclusivity for Treanda in September 2015, Teva has managed to safeguard the drug’s revenues through effective life cycle management. The company also plans to maintain its oncology stream revenues through the launch of its new drug Bendeka. To know more about this strategy, please refer to Bendeka: How Teva Plans to Safeguard Oncology Revenues.

Peer recommendations

Based on a Bloomberg survey of 17 brokerages, Akorn (AKRX) has received “buy” recommendations from 62.5% of analysts and “hold” recommendations from 37.5%. The consensus 12-month target price for Akorn is ~$36.27, which represents a rise of 23.7% from $29.31 as of August 17, 2016.

Among the 24 brokerages surveyed by Bloomberg for Mylan (MYL), 59.1% have given it a “buy” rating, and 40.9% have given it a “hold.” No analysts rated it a “sell.” The consensus 12-month target price for Mylan is ~$58.08, which represents a rise of 18.8% from $48.90 as of August 17, 2016.

Among the 22 brokerages surveyed by Bloomberg for Perrigo (PRGO), 23.8% have given it a “buy” rating, and 66.7% have given it a “hold.” Only 9.5% have rated it a “sell.” The consensus 12-month target price for Perrigo is ~$98.42, which represents a rise of 9.9% from $89.54 as of August 17, 2016.

In the next part of this series, we’ll explore the rationale of the Teva–Allergan Generics deal in greater detail.

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