Canaccord Genuity Raises Price Target on Teva Pharma (TEVA) Following Announced Acquisition of Allergan Generics

Canaccord Genuity maintained a Hold rating on Teva Pharma (NYSE: TEVA), and raised the price target to $79.00 (from $63.00), following the announced acquisition of Allergan Generics for $40.5B - $33.75B in cash and $6.75B in stock. Analyst Corey Davis said that this is not a good signal about the overall future of the generic market, but a necessity for Teva.

Davis commented, "Teva announced the acquisition of Allergan Generics for $40.5B - $33.75B in cash and $6.75B in stock. While a bit surprising to most, we've long since thought this made more sense (and would be easier) than Mylan. It's not a good signal about the overall future of the generic market, but a necessity for Teva given its reluctance over the last few years to embrace the sorts of deals it should have been doing. As long as there are deals #'s 2-6, etc still to come, we're inclined to finally start to warm up to the stock. But given the performance yesterday, and the competition for good assets (hence potential for hyper-inflated price tags), we're not ready yet to declare victory for management, which is already getting much higher grades. Hence, we stay at a HOLD but raise our target to $79 in lockstep with the accretion and Monday's move."

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 $72.00 yesterday.

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