Analysts have responded favorably to Teva Pharmaceutical Industries Ltd's (Nasdaq: TEVA; TASE: TEVA) business plan, and some analysts have raised their target prices for the share. It seems that Teva's share price was nearing the analysts' previous targets.
UBS has raised its target price for Teva from $60 to $70. Analysts cited Teva's numerous growth engines, which can support the company's numbers.
IBI Investment House analyst Natalie Gutman has raised her target price for Teva from $55 to $66, although she reiterated her "Market perform" recommendation for the share. She called Teva's business plan "an impressive presentation", and noted Teva's seriousness in understanding the risks in relying solely on Copaxone. On the risk side, she noted that most of Teva's brand drugs in the pipeline are not yet ready.
Bank Hapoalim analyst Gilad Sarig says that Teva's forecast is ambitious, but realistic. He says that most of the company's growth will come from new products and developing markets. He expects only modest growth from the company's developed and mature markets.
Harel Finance analyst Steven Tepper believes that Teva's clear and strong strategy will enable it to achieve its targets. He has reservations, however, about the goal of 35% share of the US generics market, and believes that most of it will be based on the launch of new drugs in the coming period. As for brand drugs, he believes that Teva's revenue forecast includes revenue from drugs that have not yet been approved, or which the company will acquire in the future.
Teva's share rose 4.4% on Nasdaq on Friday to $59.34, giving a market cap of $52.5 billion. The share rose 3.3% by mid-afternoon on the TASE today to NIS 221.60.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2010
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