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The Majority of Analysts Recommend a ‘Hold’ for Teva

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Analysts’ recommendations

Teva Pharmaceutical Industries (TEVA) plans to release its second-quarter earnings results on August 2. The company’s performance has improved since it started the implementation of its restructuring plan, which it announced in December 2017. The company’s troubled times began in fiscal 2017 after its $40.5 billion acquisition of Allergan’s generic business failed to deliver the expected synergies. In this article, we’ll look at Teva’s recent recommendations and 12-month target price from Wall Street analysts.

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As of July 30, a Reuters survey of the 28 analysts covering Teva Pharmaceutical Industries indicated that ~21.4% of the analysts have a “buy” or “strong buy” rating on TEVA stock. However, the majority of these analysts, ~53.6% of them, have a “hold” recommendation on the stock. The remaining ~25% of analysts recommend TEVA as a “sell.” The above chart shows Teva’s recommendation summary over the last few months.

Target prices

On July 30, Teva Pharmaceutical Industries had a consensus 12-month target price of $20.48 per share. This target price represents a 12-month return potential of -11.5% based on the stock’s closing price of $23.14 on July 27.

On July 30, the analysts’ consensus target prices on peers Mylan (MYL), Novartis (NVS), and Pfizer (PFE) for the next 12 months were $48.74, $88.17, and $39.80, respectively. These prices represent potential returns of ~34.6%, ~5.6%, and ~3.6%, respectively, for the next 12 months.

Recommendation revisions and updates

On July 16, Cantor Fitzgerald increased its target price on TEVA stock from $18 to $25. On July 3, Bernstein raised its target price on Teva from $20 to $26. On June 21, UBS raised its target price on Teva Pharmaceutical Industries. In June, Leerink and Citigroup also raised their target prices on the company’s stock. In the next article, we’ll look at sales estimates for Teva Pharmaceutical Industries in Q2 2018.

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