UPDATE: Goldman Sachs Raises PT on Teva to $46
Goldman Sachs reiterates a Neutral rating on Teva Pharmaceuticals (NYSE: TEVA) and raises its price target from $45 to $46.
Goldman Sachs notes, “While we are not modeling substitutable Copaxone generics, this remains a risk, which we view as unchanged by the court decision. The regulatory pathway is separate from the legal pathway which is now resolved (but MNTA/MYL will likely appeal, which could take 12-18 mth). In our view, the bigger Copaxone risk is the regulatory side. It is still possible that the FDA could grant MNTA/MYL a tentative approval between now and Sept. 2015, which would dispel TEVA's claim that a substitutable Copaxone generic would require clinical trials. A substitutable generic could bring down our EPS ests by $0.45-$0.70 in 2015-17, lowering 2011-17 EPS CAGR to 2% (fr. 4%) vs. MYL at 10% and pro-forma WPI at 16% and lowering 2015E-16E yoy growth rates to -4% and -6% (fr. +4%/-1%).”
Teva closed at $38.01 on Friday.
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Tags: Goldman Sachs