Teva Pharmaceutical (TEVA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Jason Gerberry from Bank of America Securities maintained a Buy rating on the stock and has a $20.00 price target.
Jason Gerberry has given his Buy rating due to a combination of factors including Teva Pharmaceutical’s strategic focus on achieving EBITDA growth by 2026. The company plans to implement cost efficiencies ranging from $400-550 million, which are expected to offset potential challenges such as tariff exposure on US generics. Despite a significant anticipated EBITDA drag from the loss of g-Revlimid, management remains confident in their ability to grow EBITDA through meaningful cost-efficiency and restructuring efforts.
Moreover, Teva is poised to benefit from a promising new product cycle starting in 2026, which is expected to drive long-term growth beyond mere cost-cutting measures. The company’s management has also indicated plans to reduce costs of goods sold and improve organizational effectiveness, aiming to streamline operations following past mergers and acquisitions. These initiatives, combined with a diversified revenue base away from US generics, underpin Gerberry’s positive outlook and the reiterated price objective of $20.
Gerberry covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Jazz Pharmaceuticals, and Alkermes. According to TipRanks, Gerberry has an average return of 0.6% and a 46.44% success rate on recommended stocks.