In a report released on July 18, Jason Gerberry from Bank of America Securities reiterated a Buy rating on Teva Pharmaceutical, with a price target of $22.00.
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Jason Gerberry has given his Buy rating due to a combination of factors related to Teva Pharmaceutical’s position in the upcoming Inflation Reduction Act (IRA) drug price negotiations. The expert feedback from a healthcare policy call suggested that the process for the 2027 negotiations will be similar to the previous round, which resulted in a 22% cost savings. This consistency in the negotiation process is seen as favorable for Teva, especially since there is no indication that international reference pricing will be leveraged to lower prices further.
Additionally, the presence of therapeutic alternatives like Neurocrine’s Ingrezza is expected to set a higher starting point for Austedo’s price negotiations, potentially benefiting Teva. The expert also noted that the political risks, such as the incorporation of the Most Favored Nations (MFN) clause into the IRA, are unlikely to materialize. These factors, combined with Teva’s attractive valuation and promising new product cycle, underpin Gerberry’s Buy rating.
In another report released on July 15, Goldman Sachs also reiterated a Buy rating on the stock with a $24.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TEVA in relation to earlier this year.