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Credit Suisse softens view on Teva, sees 21% downside risk; shares down 2% premarket

Published 08/24/2017, 08:03 AM
© Reuters.  Credit Suisse softens view on Teva, sees 21% downside risk; shares down 2% premarket
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  • Bearish sentiment is still dogging Teva Pharmaceutical Industries (NYSE:TEVA). This morning, Credit Suisse (SIX:CSGN) downgraded the stock to Underperform and lowered its price target to $13 (21% downside risk) from $25.
  • Analyst Vamil Divan says the company's core challenge is not going to "fade anytime soon," citing uncertainties with the firm's leadership and strategy and pricing headwinds in generics. Top seller Copaxone will probably face generic competition no later than Q1 2018. Migraine candidate fremanezumab is a bright spot, but U.S. approval may not come until late 2018.
  • A turnaround may come if it hires a credible CEO and receives top dollar for the non-core assets that it plans to divest.
  • Shares are down 2% premarket on increased volume.
  • Source: Bloomberg
  • Now read: AbbVie May Become The New Teva

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