Teva Pharmaceutical Industries (NASDAQ:TEVA) Ltd is uniquely positioned to undergo a significant transition to a more brand focused company that should drive outperformance of its stock price, according to UBS analysts.
In an update to clients, they upgraded Teva stock to ‘Buy’ from ‘Neutral’, while raising its price target by 37% to $13 per share, believing the stock is not pricing in the company’s brand transition.
"More than 20% of Teva's estimated 2027 to 2030 sales (versus current 11%) can come from high-growth brands, with potential for upside, while mature business stabilizing supports strong free cash flow," the analysts wrote.
They believe Teva's key brands, such as Austedo, Uzedy and Ajovy, are likely to see acceleration with company's focus on growth engine delivery.
Analysts at UBS also stated they are optimistic on a "burgeoning" company brand pipeline that can start to be realized via outcome of two key clinical trials in the second half of 2024: TL1a Phase 2 and olanzapine LAI Phase 3.
NYSE-listed shares of Teva Pharmaceutical rose 3.5% to $9.88 in late-afternoon trading on Monday.
Contact Sean at sean@proactiveinvestors.com