Teva Pharma stock rating reiterated by JPMorgan ahead of Q2 earnings

Investing.com - JPMorgan has reiterated an Overweight rating and $23.00 price target on Teva Pharmaceutical (TADAWUL:2070) Industries Ltd (NYSE:TEVA) ahead of the company’s second-quarter earnings report. According to InvestingPro data, this target aligns with broader analyst sentiment, with consensus targets ranging from $18.07 to $30.00.

The firm expects Teva to report revenues of $4.3 billion, earnings per share of $0.63, and EBITDA of $1.2 billion for the quarter, broadly in line with consensus estimates. The company has demonstrated stable financial health, with InvestingPro analysis showing a "GOOD" overall financial health score and positive revenue growth of 3.8% over the last twelve months.

JPMorgan projects approximately 2% growth for Teva’s U.S. generics business in the quarter, with flat contribution from Revlimid and unfavorable comparisons for generic Victoza, while anticipating strong growth from Austedo (estimated at $499 million) and Uzedy (estimated at $42 million).

The firm has slightly reduced its international generic growth expectations for the year but notes this should be more than offset by a foreign exchange tailwind due to the ongoing weakening of the U.S. dollar.

JPMorgan analyst Chris Schott (ETR:1SXP) maintained the Overweight rating in a research note addressing the pharmaceutical company’s upcoming financial results and business outlook.

In other recent news, Teva Pharmaceutical Industries has reiterated its financial targets for 2027, aiming for a 30% operating profit margin and projecting a free cash flow exceeding $2.7 billion by that year. Fitch Ratings upgraded Teva’s Long-Term Issuer Default Ratings to ’BB+’ from ’BB’, reflecting the company’s progress in reducing debt and improving financial flexibility. The firm expects continued revenue growth from key products like Austedo and Ajovy. Analysts at UBS have lowered their price target for Teva to $23.00, maintaining a Buy rating, and noted the company’s progress in addressing investor concerns. Meanwhile, Goldman Sachs initiated coverage with a Buy rating and a $24.00 price target, citing strong growth prospects in Teva’s branded segment. Truist Securities also began coverage with a Buy rating, setting a $25.00 price target, and expressed confidence in Teva’s long-term growth strategy. These developments highlight Teva’s ongoing efforts to stabilize and grow its business amid various market challenges.

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