UBS is disappointed in Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), and has cut its recommendation on the stock from "Buy" to "Neutral". The bank has lowered its price target for Teva from $52 to $41. This follows publication of the company's guidance for 2013, which was below analysts' estimates.
On Friday, Teva projected non-GAAP earnings per share of $4.85-5.15 for next year, whereas analysts had estimated $5.65.
UBS estimates that the gross profit margin on Teva's branded multiple sclerosis treatment Copaxone will be 61% in 2013; Teva projects 89%.
UBS says that it does not expect much movement in the stock in the first half of 2013, or in the company's pipeline, and recommends re-examining it later in the year.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2012
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