Truist starts Teva Pharma coverage with Buy, sets $25 target

Published 27/05/2025, 21:54
© Reuters

On Tuesday, Truist Securities began coverage on shares of Teva Pharmaceutical (TADAWUL:2070) Industries Limited (NYSE:TEVA), issuing a Buy rating and setting a price target of $25.00. The announcement from Truist comes as Teva Pharma’s stock trades 25% below its recent highs, suggesting a potential opportunity for investors. According to InvestingPro analysis, Teva currently appears undervalued, with the stock showing a strong return over the last month.

The firm expressed confidence in Teva’s ability to compete with larger pharmaceutical companies, citing a robust growth strategy aimed at long-term success. "We initiate coverage on TEVA ahead of its upcoming investor day with a BUY rating and $25 PT. We think the company is well positioned to rival big pharma with its long-term durable growth strategy," stated the analyst from Truist Securities. InvestingPro data shows Teva as a prominent player in the Pharmaceuticals industry, with $16.6 billion in revenue and a "GOOD" overall financial health score.

The optimistic outlook is based on Teva’s current positioning and the anticipation of its investor day, which is expected to provide further insights into the company’s strategic plans and growth prospects. Discover more exclusive insights and 7 additional ProTips for TEVA with an InvestingPro subscription, including detailed analysis of the company’s growth trajectory and market position.

Truist’s recommendation to "accumulate" the stock reflects a positive view on Teva’s potential for appreciation. The firm’s initiation of coverage could influence market perception and investor sentiment towards the pharmaceutical company.

The $25 price target represents Truist’s valuation of Teva Pharma’s stock, factoring in the company’s market performance and future growth expectations. As Teva Pharma prepares for its investor day, investors and market watchers will be closely monitoring the company’s disclosures and Truist’s analysis.

In other recent news, Teva Pharmaceutical Industries Ltd. reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.52 against a consensus estimate of $0.48. Revenue for the quarter was $3.9 billion, showing a 5% year-over-year increase in local currency terms, although slightly below the anticipated $3.98 billion. The company raised its full-year 2025 earnings guidance to $2.45-$2.65 per share and now projects revenue of $16.8-$17.2 billion. In financial developments, Fitch Ratings upgraded Teva’s Long-Term Issuer Default Ratings to ’BB+’ and Moody’s raised the Corporate Family Rating to Ba1, both citing improvements in credit metrics and debt reduction. Additionally, JPMorgan upgraded Teva’s stock rating to Overweight, increasing the price target to $23, following Teva’s announcement of a $700 million cost-cutting initiative. This initiative is part of Teva’s strategy to achieve a 30% operating margin by 2027. The company also reported strong sales growth for key products like AUSTEDO and AJOVY, contributing to its positive earnings outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.