UBS reiterates Teva's Buy rating but cuts price target

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj

UBS does not see the Israeli pharmaceutical company getting seriously hurt by the Covid-19 pandemic.

UBS analyst Kevin Caliendo has reiterated Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) Buy rating but cut the Israeli company's share price target from $14 to $12. The company's share price is currently up 7.56% at $9.03, giving a market cap of $9.8 billion.

UBS does not see the company getting seriously hurt by the Covid-19 pandemic and its knock-on economic effects and stresses that Teva has access to more than $3 billion in liquidity, should it be required. Caliendo calculates that Teva's free cash flow is enough for outstanding balances through 2022.

The price target has been cut on concerns that estimated sales of its two new branded drugs - migraine treatment Ajovy and its recently launched auto-injectable version and movement disorder treatment Austedo could both see 2020 sales hurt by fewer visits to the doctor during the Covid-19 crisis.

Published by Globes, Israel business news - www.globes-online.com - on April 6, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Teva Photo: Sivan Faraj
Teva Photo: Sivan Faraj
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