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Wells Fargo Lowers Earnings On Teva (TEVA)

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Wells Fargo Securities is lowering its earnings estimates on Teva (NASDAQ: TEVA) for 2010 and 2011. It lowered earnings on 2010 to $4.55 from $4.58, and 2011 went to $5.30 from $5.39. It is reiterating its Outperform rating and $62-$64 price target.

In the research report, Wells Fargo writes, "Reiterate Outperform rating as recent events (Copaxone/Gemzar) helped solidify outlook. Slightly lowered 2010E and 2011E cash EPS to $4.55 and $5.30 (from $4.58 and $5.39) to reflect completion of Ratiopharm acquisition. Our model could be conservative as we assume only modest cost synergy, no extended gEffexor XR exclusivity, and no sales synergy or margin expansion via leveraging of TEVA's existing infrastructure. Raising valuation range to $64-$66 (12.0-12.5x 2011E cash EPS of $5.30) from $62-$64. Risks: Copaxone deceleration/adverse litigation outcome, and significant erosion in generic pricing."

Shares of Teva are losing 27 cents in early Thursday trade, to trade at $54.04.

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Posted-In: Wells Fargo SecuritiesAnalyst Color Earnings News Price Target Analyst Ratings

 

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