Teva Pharmaceutical upgraded to 'Buy' at UBS
UBS upgraded Teva Pharmaceutical (TEVA) to Buy from Neutral and raised its price target on the stock to $13 per share. UBS sees Teva "uniquely positioned to undergo a significant transition" to a more brand-focused company.
Yahoo Finance anchors Seana Smith and Diane King Hall break down UBS's call on Teva and the stock's recent gains.
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Video Transcript
SEANA SMITH: UBS upgrading TEVA to buy from Neutral and raising its price target on the stock to $13. That's up from $10 a share. Analysts there are saying that they are revising the pharma company's outlook estimates, upping its sales compound annual growth rate for the next three years to 3% to 4% growth. UBS saying that the pharmaceutical company is, quote, "uniquely positioned" and is becoming more brand-focused, which could drive the stock's outperformance in the years to come.
I think that last line there, the focus on the brand performance is really what sticks out to me within this report when you compare it to what has really driven the stock lately or the focal point, I should say, from investors.
A lot of that has been surrounded by revenue and EBITDA stabilization. So now we have this focal point transitioning to TEVA's attractive brand assets, what exactly that's going to do for future growth. UBS, obviously, is thinking that it's enough here to upgrade this new.
DIANE KING HALL: Yeah. And to your point, another thing to watch with regard to TEVA, some clinical trials that it has going on. They're expected to finish the outcome of those in 2024 in the second half. And so that could help the company's brand pipeline and certainly could it add something with regard to the share price because it's only up 3% year to date.
So it's definitely one to watch when you think about that. And with that price target increase, it has more room to run. I mean, it's nearing $10 a share today. So we'll see if it hits that price target of $13 a share.
