BTIG Downgrades Teva Pharma (TEVA) to Neutral

November 16, 2016 7:33 AM EST
Get Alerts TEVA Hot Sheet
Price: $36.53 -0.11%

Rating Summary:
    21 Buy, 18 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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BTIG downgraded Teva Pharma (NYSE: TEVA) from Buy to Neutral and removed its price target. Analyst Timothy Chiang noted Copaxone risk.

"We downgrade TEVA shares to Neutral based on three key factors: 1) poor visibility on near term revenue growth drivers for the generic / branded segments, 2) heavy debt leverage (Teva has ~$36.9B of outstanding debt) which currently stands at ~5x debt/ebitda which provides the Co. little margin for error going forward, and 3) the potential for generic entry on Copaxone 40mg in 2017 – Copaxone remains a key contributor to the Co.’s sales (19% of total), and operating profits (42% of total). While Copaxone 40mg is protected by five Orange Book listed patents, we think a key US District (Delaware) Court decision is upcoming in early 2017. While the shares were down ~8% today, we think the near term risks outweigh any potential upside that might occur with this upcoming legal decision," said the analyst.

For an analyst ratings summary and ratings history on Teva Pharma click here. For more ratings news on Teva Pharma click here.

Shares of Teva Pharma closed at $37.60 yesterday.



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