Jefferies analyst Dennis Ding reiterated a Buy rating and $40.00 price target on Teva Pharma (NYSE: TEVA)

The analyst comments: "TEVA has performed well in 2025 and in line with our (+) thesis on Austedo execution + IRA negotiations, which looked better than expected and lifted an overhang. With the stock trading at 9-10x EV/EBITDA, TEVA looks optically "expensive" going into 2026 vs spec pharma comps, but we'd argue there's still room for multiple expansion, especially if investors start looking at TEVA through a biopharma lens. The major difference vs traditional large-cap biopharma comes from pipeline conviction and (+) terminal value reflecting R&D productivity, which historically for TEVA has been zero. Thus, we like the setup, as it will be an impt year to convince investors - particularly generalists - that TEVA indeed has a productive R&D engine, and we see multiple pipeline catalysts in 2026 for our thesis to play out. Side note: People often forget that TEVA's TL1A was completely internally discovered and is a target that pharma has valued at $7-10B."

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Shares of Teva Pharma closed at $29.14 yesterday.