Needham & Company Maintains a 'Strong Buy' on Teva Pharma (TEVA); Revamped Financial Guidance Largely In-Line; 2012 Will Be A Year of Slugging It Out
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Price: $36.77 +0.68%
Rating Summary:
17 Buy, 22 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 22 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Strong Buy' on Teva Pharma (NASDAQ: TEVA) price target of $56.00.
Needham analyst says, "Teva’s revamped 2012 outlook was largely in-line with ever more conservative expectations though given $0.25 bottom-line contribution from recent Cephalon acquisition, initial guidance range that implies 6%-8% bottom-line organic growth certainly isn’t enough to alter existing negative sentiment or alter current valuation dynamics. Execution, particularly in U.S. generics, over-performance on financials even if modest, realization of upside catalysts in the form of low or no probability assumed pipeline value (Tricor) and most importantly elimination of overhang risk surrounding generic threat to Copaxone combine to create attractive reward/risk scenario in the name particularly given continued disillusionment with the story. Announcement of $3.0B buyback higher than our expectations and while not large enough to change story dynamics to a return-of-capital name puts a solid floor on shares at current levels. Management’s characterization of prior 2015 financial objectives as “aspirational” will no doubt lower longer-term growth expectations for key growth engines, mainly U.S. generics, though our view is that current valuation has already handicapped ratcheting down of out-year growth targets."
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 $41.76 yesterday.
Needham analyst says, "Teva’s revamped 2012 outlook was largely in-line with ever more conservative expectations though given $0.25 bottom-line contribution from recent Cephalon acquisition, initial guidance range that implies 6%-8% bottom-line organic growth certainly isn’t enough to alter existing negative sentiment or alter current valuation dynamics. Execution, particularly in U.S. generics, over-performance on financials even if modest, realization of upside catalysts in the form of low or no probability assumed pipeline value (Tricor) and most importantly elimination of overhang risk surrounding generic threat to Copaxone combine to create attractive reward/risk scenario in the name particularly given continued disillusionment with the story. Announcement of $3.0B buyback higher than our expectations and while not large enough to change story dynamics to a return-of-capital name puts a solid floor on shares at current levels. Management’s characterization of prior 2015 financial objectives as “aspirational” will no doubt lower longer-term growth expectations for key growth engines, mainly U.S. generics, though our view is that current valuation has already handicapped ratcheting down of out-year growth targets."
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 $41.76 yesterday.
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