Market Overview

Teva's New CEO Is A Positive Catalyst

Teva's New CEO Is A Positive Catalyst
Related TEVA
This Day In Market History: UN Partitions Palestine For Independent Jewish State
9 Policy Catalysts For Health Care Investors To Watch Before Year's End
Roche Still Offers A Respectable Return As Bulls And Bears Slug It Out (Seeking Alpha)

Shares of Teva Pharmaceutical Industries Ltd (ADR) (NYSE: TEVA) were trading higher by more than 11 percent early Monday morning after the company named Kare Schultz as its new CEO after a seven-month search period.

Schultz brings decades of experience in the pharmaceutical industry and most recently served as the president and CEO of Denmark-based H. Lundbeck A/S. The executive will move to Teva's headquarters in Israel, and his appointment is a positive catalyst that will create a floor for the stock, BTIG's Timothy Chiang commented in a research report.

Chiang upgraded Teva's stock rating from Neutral to Buy with a new $25 price target despite various challenges ahead for the generic drug maker, including a heavy debt-load. But Schultz does bring decades of relevant experience which is the "single most important item."


Looking forward, Teva's most important pipeline asset, fremanezumab, could prove to be a blockbuster product due to its more flexible dosing regimen. This, along with other generic products in the pipeline, is expected to "attract more attention" heading into 2018 and could provide a boost for the stock.

Bottom line, Teva's stock appears to be oversold, the analyst continued. The stock is trading at a PE multiple of just 4x as opposed to the group average of 9x. The stock is also trading at an EV/EBITDA multiple of 6.7x which is also a discount to the group average of 9.8x.

At time of publication in Monday's pre-market session, shares of Teva were up 12.26 percent at $17.40.

Related Links:

Teva Downgraded As Analyst Casts Doubt On Turnaround Story

Teva's Quarter: Earnings Miss, Guidance Cut, Dividend Devastated

Latest Ratings for TEVA

Nov 2018Morgan StanleyUpgradesEqual-WeightOverweight
Nov 2018Bank of AmericaMaintainsUnderperformUnderperform
Oct 2018Goldman SachsMaintainsBuyBuy

View More Analyst Ratings for TEVA
View the Latest Analyst Ratings

Posted-In: Analyst Color Biotech Long Ideas News Upgrades Management Analyst Ratings Movers Best of Benzinga


Related Articles (TEVA)

View Comments and Join the Discussion!

Latest Ratings

MOSJP MorganDowngrades33.0
BACKeefe Bruyette & WoodsDowngrades29.0
AMTMorgan StanleyDowngrades170.0
EBAYMorgan StanleyDowngrades33.0
UNITMorgan StanleyDowngrades16.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Movie Studios Blame Rotten Tomatoes For Box Office Woes

18 Stocks Moving In Monday's Pre-Market Session