UPDATE: Auriga Starts Teva Pharma (TEVA) at Hold; Sidelined Until New CEO Is Convincing
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Price: $36.48 --0%
Rating Summary:
17 Buy, 22 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 6
Rating Summary:
17 Buy, 22 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 6
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(Updated - May 23, 2012 12:46 PM EDT)
Auriga initiates coverage on Teva Pharma (NASDAQ: TEVA) with a Hold. PT $45.00.
Analyst, Louise Chen, said, "We arrive at our valuation by using a blend of Price to Earnings (P/E) and Discounted Cash Flow analysis. Although TEVA is inexpensive, trading at 7x P/E while its peers trade at a 15x P/E, we remain on the sidelines until the new CEO, Jeremy Levin, presents his strategic vision for TEVA. We would expect this to be unveiled at an Investor Day at the end of 2012. During TEVA's 1Q12 earnings call, Jeremy Levin noted that he is withholding TEVA's 2012 financial guidance until he devises a new path forward for the company. If the new CEO can identify a convincing growth strategy for TEVA and change the Street's perception that TEVA is a mature company then upwards earnings revisions and multiple expansion could drive the stock higher after the Investor Day. That being said we think that this will be challenging to accomplish because of the numerous headwinds facing TEVA, such as Copaxone patent cliff, EU pricing pressure, slowing US generics growth and lack of near term blockbuster opportunities in TEVA's brand business."
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 $38.98 yesterday.
Auriga initiates coverage on Teva Pharma (NASDAQ: TEVA) with a Hold. PT $45.00.
Analyst, Louise Chen, said, "We arrive at our valuation by using a blend of Price to Earnings (P/E) and Discounted Cash Flow analysis. Although TEVA is inexpensive, trading at 7x P/E while its peers trade at a 15x P/E, we remain on the sidelines until the new CEO, Jeremy Levin, presents his strategic vision for TEVA. We would expect this to be unveiled at an Investor Day at the end of 2012. During TEVA's 1Q12 earnings call, Jeremy Levin noted that he is withholding TEVA's 2012 financial guidance until he devises a new path forward for the company. If the new CEO can identify a convincing growth strategy for TEVA and change the Street's perception that TEVA is a mature company then upwards earnings revisions and multiple expansion could drive the stock higher after the Investor Day. That being said we think that this will be challenging to accomplish because of the numerous headwinds facing TEVA, such as Copaxone patent cliff, EU pricing pressure, slowing US generics growth and lack of near term blockbuster opportunities in TEVA's brand business."
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 $38.98 yesterday.
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