Teva Pharma (TEVA) PT Lowered to $40 at Maxim Group

Maxim Group lowered its price target on Teva Pharma (NYSE: TEVA) to $40.00 (from $41.00) while maintaining a Hold rating following results this morning.

Analyst Gabrielle Zhou commented, "This morning, Teva reported 4Q16 and full year results; total quarterly revenues were $6.5B, up 16.7% sequentially. Revenues breakdown: $3.7B from the generic business (now includes the OTC revenues), representing a 28% increase from $2.9B in 3Q16, mainly due to the accretion of Actavis business. Specialty medicine revenues were $2.2B, including $1B in total Copaxone sales, which was down 4% from 3Q16 Copaxone revenues. The quarterly numbers translated into a net loss of $937M in 4Q16, as a result of acquisition related write-downs, goodwill impairment and financial expenses. Non-GAAP net income for 4Q16 and the full year were $1.4B or $1.38 per diluted share, and $5B or $5.14 per diluted share, respectively. Teva ended the period with $1B in cash and closed to $36B in debt. We continue to watch Copaxone market share which today we estimate accounts for 28%-29% of new and total Rx's in the U.S. We model additional share loss not yet factored into Teva's guidance; however our numbers are in-line with guidance as we assume more robust performance in generics performance."

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