Investors Scoff At Teva's (TEVA) Cost Cutting Plans
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Price: $37.34 +1.44%
Rating Summary:
17 Buy, 22 Hold, 1 Sell
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
17 Buy, 22 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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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."
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