Teva Pharma (TEVA) PT Bumped to $75 at Piper Jaffray
Piper Jaffray analyst David Amsellem lifted his price target on Teva Pharma (NYSE: TEVA) to $75.00 (from $57.00) on plans to acquire Allergan's generic business but maintained a Neutral rating.
Amsellem commented, "With Teva deadset on doubling down on its global exposure to generics, this at least brings it a higher quality set of assets compared to Mylan, and that should drive modest P/E expansion in our view. That said, irrespective of the quality of these assets, the challenge in a global generics business in our view is visibility on robust long-term organic growth (we believe this is less of an issue with niche players focused on mainly on alternative dosage forms). As such, we do not envision dramatic P/E expansion. TEVA is trading at 11x our pro forma 2017 EPS estimate, and this is in the context of an EPS CAGR that is in the midto-high single digits at best."
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Shares of Teva Pharma closed at $72.00 yesterday.