Teva Pharmaceuticals Stock Surges 6% on Positive Bank Recommendation

Teva Pharmaceutical Industries' stock surged 6% on a positive change in recommendation from JPMorgan Chase analyst Chris Schott, who upgraded the company to "overweight" (buy) and increased his price target to $23. Schott's analysis focuses on the company's cost-cutting measures and growth potential in branded products such as Austedo, Olanzapine, and Duvakitug. Analysts collectively forecast a 3% revenue increase in 2025 and a 9% per-share net income increase in 2026.

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) saw its stock surge 6% on Monday following a positive change in recommendation from JPMorgan Chase analyst Chris Schott. Schott upgraded Teva's stock to "overweight" (buy) and increased his price target to $23.00. This move was driven by the analyst's focus on Teva's cost-cutting measures and the growth potential in its branded products, such as Austedo, Olanzapine, and Duvakitug [1].

Schott's analysis highlights Teva's strategic cost-cutting initiative, which aims to significantly contribute to the company's margin expansion goals for 2026 and 2027. The $700 million cost-cutting program is expected to bridge the gap from Teva's current financial performance to its target of a 30% operating margin by 2027. This initiative comes as Teva navigates through the challenges of a decrease in revenues from its drug gRevlimid and the need to invest in its product pipeline [1].

Teva's growth outlook appears to be improving, particularly with its branded business portfolio. Schott highlighted the continued growth of Austedo, a treatment for chorea associated with Huntington’s disease and tardive dyskinesia, and the anticipated launches of Olanzapine LAI in 2026 and Duvakitug (TL1a), which shows potential in the treatment of Crohn’s Disease and the broader inflammatory bowel disease (IBD) market [1].

Analysts collectively forecast a 3% revenue increase in 2025 and a 9% per-share net income increase in 2026. Teva's first-quarter earnings report, which surpassed analyst expectations, further supports this positive outlook. The company posted adjusted earnings per share of $0.52, exceeding the consensus estimate of $0.48, although revenue was slightly below projections [1].

Teva Pharmaceutical Industries Ltd., with its new financial strategy and upcoming product launches, is expected to see improved growth as it works towards achieving its long-term financial targets. Investors and financial professionals should closely monitor Teva's progress in the coming quarters to assess the impact of its strategic initiatives and new product launches on its financial performance.

References:
[1] https://ng.investing.com/news/analyst-ratings/jpmorgan-lifts-teva-stock-rating-raises-target-to-23-93CH-1913628