Analyst recommendations for Teva
Teva Pharmaceuticals (TEVA) is the largest generic drug manufacturer in the world with a presence in the business areas of APIs (active pharmaceutical ingredients) and proprietary pharmaceuticals. Over the last one year, the company has seen considerable volatility in stock prices triggered by a number of key events. During its latest earnings release on November 2, 2017, Teva Pharmaceuticals lowered its fiscal 2017 financial outlook due to increased competition, pricing pressure, and lower contribution from new product launches. The company also decreased its dividend payments for the recent two quarters and undertook massive business restructuring initiatives comprising of various cost-cutting measures and layoffs in December 2017. In this article, let’s take a look at the latest Wall Street analyst recommendations and price targets on TEVA stock.
As of January 8, 2018, according to a recent Reuters survey of 29 investment research firms, approximately 20.7% of analysts have “buy” or “strong buy” ratings on TEVA stock. However, 58.6% have recommended a “hold” on the stock. 20.7% of the analysts recommend a “sell” on TEVA stock.
The Wall Street analyst consensus 12-month target price for Teva Pharmaceuticals is $18.7 per share, which represents a -2.6% return on investment in the stock over the next 12 months. The closing price of TEVA stock was $19.2 per share on January 5, 2018.
On January 8, 2018, the 12-month consensus target prices for Teva’s peers Mylan (MYL), Allergan (AGN), and Pfizer (PFE) were $46.4, $224.8, and $38.4, respectively. The target prices represent an investment return potential of approximately 4.1%, 30.5%, and 4.1%, respectively, over the next 12 months.
Recommendation revisions and updates
On January 5, 2018, Wells Fargo downgraded its recommendation on TEVA stock from “market perform” to “underperform,” whereas it increased its target price on TEVA stock from $12 to $17. On January 4, 2018, Citigroup increased its rating on TEVA stock from “neutral” to “buy.” It has a 12-month price target of $24 on the stock.
Investors can consider the iShares MSCI EAFE ETF (EFA) in order to get diversified exposure to Teva Pharmaceuticals. EFA invests ~0.12% of its total portfolio holdings in TEVA.