4 Healthcare Stock Stories Making a Buzz On Friday
Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA): Closing price $38.34
Analyst Chris Schott at JPMorgan downgraded Teva from Overweight to Neutral and lowered the December 2014 price target from $45 to $43. Schott observed that the recovery for Teva will be gradual and long-term growth with their expense reduction plan of “$1.5 to $2.0 billion over the next five years” needs significant investment which limits near-term earnings. The analyst questioned Teva’s approach to “new therapeutic entities” introduced in December of last year, and discussed how possible growth from NTEs is more than 4 years hence. Schott also discussed the risk of a generic Copaxone, which presently comprises more than half of Teva’s earnings.