Truist Initiates Teva Pharmaceuticals (TEVA) Coverage with Buy, $25 Price Target

On Tuesday, May 27, an analyst from Truist Securities initiated coverage on Teva Pharmaceutical Industries Limited (NYSE:TEVA) with a Buy rating and a price target of $25.

Teva Pharma is an Israeli pharmaceutical company best known as one of the world’s largest manufacturers of generic drugs. In addition to generics, the company sells branded medicines and active pharmaceutical ingredients (APIs), offers contract manufacturing services, and operates an out-licensing platform through its affiliated company, Medis.

A close-up shot of various types of medicines on a table, illustrating the specialty and generic products offered by the pharmaceutical company.

The Truist analyst believes the company’s strategy of building a portfolio of high-margin branded products while maintaining its core focus on generics is a key strength of its business model. This dual approach is expected to support sustainable and profitable growth in the years ahead.

The company has recently launched a $700 million cost-cutting initiative aimed at enhancing operational efficiency by reducing headcount and external spending. The analyst believes that this program will support margin improvement and help the company achieve its target of a 30% operating margin by 2027.

As a result of Teva’s continued focus on debt and cost reduction, as well as profitable growth, credit rating agencies Moody’s and Fitch upgraded the company’s corporate credit rating on May 15 and 20, respectively.

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Disclosure: None.