The bank now rates Teva "Market perform", and has lowered its target price for the stock.
Bank Hapoalim (LSE: BKHD; TASE: POLI) has cut its rating for generic drugs giant Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) from "Outperform" to "Market perform". The bank's price target for Teva is also cut, from $52 to $51. Teva shares are currently at $46.17.
Hapoalim cites chiefly value concerns. "The company is traded at a premium in almost every parameter in comparison with its peer group after achieving a positive return nearly 30% above that of the peer group," Hapoalim says.
"The potential for an upside surprise is limited in the short term in our view," the report continues. "In addition, we think that the goals the company has set itself for the next five years are challenging, and that it will find it difficult to achieve them without a substantial acquisition along the way."
This is the first time that Hapoalim has downgraded Teva.
Published by Globes [online], Israel business news - www.globes.co.il - on May 21, 2008
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