Elah Alkalay and Noa Weisberg, IBI:
"The results missed the consensus, but the indications for the rest of the year from the point of view of profitability and product pipeline are positive. The market's great disappointment began from the revenue line, which was lower than the consensus, but that is reasonable given the new product drought. Adjested gross profit margin was a pleasant surprise at 47.1%, when IVAX's own was 41% in the corresponding quarter.
At this stage, Alkalay and Weisberg maintain their "Buy" recommendation, with a $55 price target for the stock.
Yisca Erez, Clal Finance Batucha:
"The financials were very disappointing in both the top and bottom lines. Perhaps the most disappointing figure is IVAX's low contribution in the two consolidated months - $329 million, compared with an expectation of over $450 million. Another disappointing number is Teva's low organic growth, of just 3%. Discounting the impact of exchange rates, organic growth reached 6%."
Erez maintains her "Outperform" recommendation, with a price target of $50.
Richard Watson and Jim Parisi, William Blair:
"While these results will certainly come as a negative surprise to investors leading to some potential stock selling today, with a strong generic product flow, the benefits of additional branded drugs from IVAX, and cost synergies’ benefiting earnings, we remain optimistic regarding Teva's outlook for 2006 and 2007 and would be buyers on material weakness."
Watson and Parisi maintain their "Outperform" recommendation.
Published by Globes [online], Israel business news - www.globes.co.il - on May 10, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006