Guggenheim Remains Bullish Ahead of Teva Pharma's (TEVA) AGN Deal

Guggenheim reiterated a Buy rating and $80.00 price target on Teva Pharma (NYSE: TEVA) ahead of a deal close and pipeline catalysts in 2016. The company's AGN generics deal is scheduled to close in June. Guggenheim Cut 2016 EPS estimates $0.35 to $5.17. The decreases in EPS estimates are driven by a later-than-expected close of the AGN generics deal.

Analyst Louise Chen commented, "Although a modest delay in the generics deal close drives us to lower our '16 EPS estimate, we continue to think that upwards consensus earnings revisions and multiple expansion could drive shares higher. These could come from: 1) Generic sales and cost synergies not yet included in TEVA's guidance; 2) Brand pipeline advancements; and, 3) Execution of goals to bolster existing franchises through M&A in growth markets and for attractive assets/portfolios. TEVA trades at 8x '18 P/E, but pipeline advancements, for brand drugs, should expand this multiple to 12x, in our view."

For an analyst ratings summary and ratings history on Teva Pharma click here. For more ratings news on Teva Pharma click here.

Shares of Teva Pharma closed at $55.18 yesterday.

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