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Positive Outlook for Teva Pharmaceutical: Cost-Cutting Initiatives and Growth Potential Drive Buy Rating

Positive Outlook for Teva Pharmaceutical: Cost-Cutting Initiatives and Growth Potential Drive Buy Rating

J.P. Morgan analyst Chris Schott upgraded the rating on Teva Pharmaceutical (TEVAResearch Report) to a Buy today, setting a price target of $23.00.

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Chris Schott has given his Buy rating due to a combination of factors that provide a positive outlook for Teva Pharmaceutical. The company’s recent cost-cutting initiative, which aims to save $700 million, is a significant factor in this decision. This program is expected to enhance operational efficiency by reducing headcount and external spending, thereby improving the company’s margins and helping it reach its 30% operating margin target by 2027.
Furthermore, Teva’s branded portfolio is well-positioned for growth, with products like Austedo showing strong performance and potential for further expansion. The upcoming launches of Olanzapine LAI and Duvakitug, along with other pipeline developments, are anticipated to drive significant revenue growth. Additionally, the expected offset of revenue loss from gRevlimid by biosimilars and ex-US growth supports a stable financial outlook for the company. These factors collectively contribute to Schott’s optimistic view on Teva’s future performance.

Schott covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Pfizer, and Eli Lilly & Co. According to TipRanks, Schott has an average return of 0.5% and a 48.86% success rate on recommended stocks.

In another report released on May 7, Bank of America Securities also reiterated a Buy rating on the stock with a $22.00 price target.

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