Investors Scoff At Teva's (TEVA) Cost Cutting Plans
Get Alerts TEVA Hot Sheet
Price: $13.18 +0.69%
Rating Summary:
12 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Rating Summary:
12 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 18
Join SI Premium – FREE
Teva Pharmaceutical (NYSE: TEVA) declined on Wednesday, one day after the company's annual analyst day event. The company's CEO pledge to deliver $2 billion in cost cutting measures and refocus efforts on rebuilding the company’s pipeline, as legacy drugs like Copaxone lose patents.
Heading into the meeting, a few analysts had confidence in Teva management's ability to persuade investors. With its stock on the ropes today, those hope appear to be dashed, at least in the near term.
In a report this morning, Leerink Swann analysts said "Cumulatively, we believe TEVA's branded pipeline can start to deliver tangible contribution starting in 2015+, but we are skeptical it can replace the revenue lost from legacy products facing competitive pressure. In our view, yesterday’s long anticipated Investor Day produced no upside surprises, and investors should look for a better entry point in the stock for a more material upside opportunity."
The outlook was in line with concerns raised by other analysts, including Goldman Sachs and Bernstein Research. In the words of CNBC's Jim Cramer, TEVA is a "dog."
Heading into the meeting, a few analysts had confidence in Teva management's ability to persuade investors. With its stock on the ropes today, those hope appear to be dashed, at least in the near term.
In a report this morning, Leerink Swann analysts said "Cumulatively, we believe TEVA's branded pipeline can start to deliver tangible contribution starting in 2015+, but we are skeptical it can replace the revenue lost from legacy products facing competitive pressure. In our view, yesterday’s long anticipated Investor Day produced no upside surprises, and investors should look for a better entry point in the stock for a more material upside opportunity."
The outlook was in line with concerns raised by other analysts, including Goldman Sachs and Bernstein Research. In the words of CNBC's Jim Cramer, TEVA is a "dog."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Alvotech and Teva Announce U.S. FDA Approval of SELARSDI™ (ustekinumab-aekn), biosimilar to Stelara® (ustekinumab)
- Equity Bancshares (EQBK) PT Lowered to $35 at DA Davidson
- Loop Capital Starts Samsara Inc (IOT) at Buy, 'Play on AI, ML, & IoT Tech Themes in Asset Intensive Industries'
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogRelated Entities
Jim CramerSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!