Analysts remain positive on Teva

The quarterly and annual financial statements to the Teva Pharmaceutical Industries (Tase: TEVA; NYSE: TEVA) last Wednesday sent the company’s share price of 13.9 % a day, and the segment continued in the following days as well. In the end in New York on Friday, Tiva, headed by Richard Francis, reached $ 17.73, giving her a roof of the market of $ 20.2 billion, which represents a decrease of more than $ 4 billion within three sessions.

The disappointment in the market has provoked the TEVA directions for 2025. In the medium term of guidance, the company expects to publish uninterrupted profits of accountable accounts of the share of $ 2.5 and a free cash flow of $ 1.75 billion. Revenue instructions were similar to analysts’ estimates, at a value of $ 17.1 billion in the middle of the range. In 2024, revenues increased to more than $ 16.5 billion, with a net loss of $ 1.6 billion based on the principles of acceptable accounting in general and a net of $ 2.86 billion on the basis of other than the principles of accounting in general.

What analysts say?

After issuing the separation report, the Bank Of America reduced its target price for TEVA from $ 26 to $ 23, which is a 29.7 % bonus on the price in New York. The bank classification is still unchanged, in “purchase”. In the prediction model, the bank has reviewed the company’s profit margins down, but indicates that it invests in its innovative products. She sees TEVA attractive not only because of these products, but also because of a continuous decrease in its influence by reducing its debts, with the expectation of a major event in this regard, in the first half of this year.

Piper Sandler says Tiva should not be “punished” to direct it. She says that there may have been room for a complaint about the fact that this year’s operating profit is not expected to grow despite growth in revenues, but the context is a major investment in research and development and in promoting original drugs Austedo and Ajovy. The PIPER SANDLER recommendation is still unchanged in “Outperform”, with the price of $ 30, 69.2 % higher than the current market price.

Jefferies describes the results of the fourth quarter as mixed, and indicates that Ebitda was less than expected, and that it is not expected to grow in 2025 as well, as the company continues to invest in the pipeline. He remembers the jump in the stock price in December last year after good results in the experience of treating inflammatory bowel disease, and says that the current weakness in the shares is not surprising. Jefferies estimates that fears of profits before benefits, taxes, depreciation and consumption will pass, and in the complications of Ebitda of 7-8, you see the opportunity to buy in TEVA.

In general, despite disappointment, most analysts have not changed their opinions about Teva. According to “The Wall Street Journal” data, most analysts have positive classifications for Teva, a neutral small number, and no one recommends selling shares. The average target price is $ 24.71, and it represents a 39 % premium on the stock market price.

It was published by Globes, Israel Business News – En.globles.co.il – on February 2, 2025.

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