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Investing.com - UBS lowered its price target on Teva Pharma (NYSE:TEVA) to $23.00 from $24.00 on Thursday, while maintaining a Buy rating on the pharmaceutical company. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with analyst targets ranging from $18.07 to $30.00.
The stock has declined 22.87% year-to-date despite steady execution progress on mid and long-term outlook, according to UBS. The firm attributes this underperformance primarily to heavy hedge fund ownership and slow long-only investor involvement. The company, with a market capitalization of $19.61 billion and annual revenue of $16.62 billion, has maintained revenue growth of 3.82% over the last twelve months.
UBS believes Teva stock is being "penalized more unfairly than most of the rest of biopharma," noting that the latent valuation of the business remains meaningfully high. The firm highlighted management’s success in addressing multiple investor concerns in recent years, including stabilizing U.S. generics, revitalizing Austedo growth, demonstrating R&D execution, and solving the Revlimid revenue cliff with $700 million in savings.
The next key focus for Teva will be Austedo IRA negotiation, which UBS identifies as the primary bear case currently driving short interest to a four-year high.
Teva shares have struggled to maintain gains achieved in recent years despite what UBS characterizes as steady execution progress by management on multiple fronts.
In other recent news, Teva Pharmaceutical (TADAWUL:2070) Industries has been the focus of several significant developments. The company reiterated its financial targets for 2027, aiming for a 30% operating profit margin, with projections of free cash flow exceeding $2.7 billion by 2027 and over $3.5 billion by 2030. Teva also plans to achieve $700 million in net savings through modernization and operational efficiencies. Goldman Sachs initiated coverage on Teva with a Buy rating, highlighting growth prospects in its branded segment, while Truist Securities also began coverage with a Buy rating and a $25 price target, expressing confidence in Teva’s growth strategy. Fitch Ratings upgraded Teva’s Long-Term Issuer Default Ratings to ’BB+’ from ’BB’, citing progress in debt reduction and financial flexibility, while Moody’s Ratings upgraded Teva’s Corporate Family Rating to Ba1 from Ba2, reflecting improved credit metrics and stabilization of its generic business. Both rating agencies maintained a stable outlook, acknowledging ongoing growth in Teva’s branded franchises and biosimilar portfolio. These updates underscore Teva’s strategic initiatives in financial management and product development as it positions itself for future growth.
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