J.P. Morgan Downgrades Teva to Neutral and Lowers PT, No Near-Term Upside in Sight

J.P. Morgan analyst, Chris Schott downgraded Teva Pharmaceuticals TEVA shares from Overweight to Neutral and lowered the December 2014 PT from $45.00 to $43.00. Schott noted that recovery for Teva will be gradual and long-term growth with their cost cutting plan of “$1.5-$2.0 billion over the next five years” requires significant investment which limits near-term earnings. The analyst questioned the company's approach to “new therapeutic entities” (NTEs) introduced in December 2012 and discussed how possible growth from NTE's is over 4 years away. Schott also acknowledged the risk of a generic Copaxone, which currently makes up over half of Teva's earnings. Schott acknowledged that Teva could have “greater-than-anticipated EPS upside from cost- restructuring initiatives” but does “not see a near-term upside in either Teva's earnings or multiple.” Teva closed on Thursday at $38.88.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsChris SchottJ.P. Morgan
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!