Sterne Agee Sees Teva Pharmaceutical Outperformance Continuing

On Wednesday, Sterne Agee initiated coverage on shares of Teva Pharmaceutical Industries TEVA with a Neutral rating and $53 price target. Analyst Shibani Malhotra believes “strong conversion of Copaxone 20mg/ml to its 40mg/ml formulation is crucial.” The analyst credits the stocks year to date outperformance (up 25 percent) to the company “signaling its willingness to consider a ‘transformational deal.'” Shibani would prefer “to see management focus on execution of its realignment and cost-cutting strategy before embarking on any ambitious M&A.” The stock is up one percent to $50.10 in Wednesday's trading.