JPMorgan Upgrades Teva Pharma (TEVA) to Neutral, 'we remain cautious'

JPMorgan analyst Chris Schott upgraded Teva Pharma (NYSE: TEVA) from Underweight to Neutral with a price target of $14.00 (from $11.00).

The analyst comments "We are moving to Neutral on TEVA ahead of upcoming catalysts. Teva continues to progress its innovative pipeline, particularly olanzapine LAI (phase 3 data expected in 2H24) and its TL1A (interim phase 2 data expected in 2H24). While we have been concerned that the investments required to develop these assets would pressure margins, the company has done an effective job of partnering these programs to address this dynamic. In addition, Austedo has responded well to TEVA’s stepped-up investment levels, helping offset still lackluster NA generic results. At the same time, we remain cautious on portions of the company’s underlying business, particularly TEVA’s North America generics business. Ex-gRevlimid, Teva’s NA generic business has underperformed our expectations and we do not expect biosimilars will be able to replace lost gRevlimid sales in 2026+. On this front, TEVA’s 4Q results were somewhat disappointing (after adjusting for the $500mm payment from the TL1A partnership) with generics underperforming our expectations both in the US and in Europe and gross margins also weaker-than-expected. Altogether, we see a more balanced risk/reward for TEVA shares and are moving to a Neutral rating and $14 PT."

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 $13.71 yesterday.

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