UPDATE: Morgan Stanley Lowers PT on Teva Pharmaceutical Following Lowered EPS Estimates

In a report published Wednesday, Morgan Stanley analyst David Risinger reiterated an Equal-Weight rating on Teva Pharmaceutical TEVA, but lowered the price target from $42.00 to $40.00.

In the report, Morgan Stanley noted, “We are lowering 2014-2017E EPS ests. by 4-13% and PT from $42 to $40. We now model pharmacist- substitutable Copaxone generics upon patent expiration in May 2014 – 15 months earlier than previously (due to invalidation of Sept '15 patent)...We see Teva's stock as relatively inexpensive on near-term EPS but expect pressures in 2014-2017 when Copaxone, Nuvigil, and Treanda face generics. Bull/ bear cases continue to hinge on Copaxone franchise durability. Brand pipeline success, cost cutting, and external deals could drive upside.”

Teva Pharmaceutical closed on Tuesday at $39.52.