This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

UBS: 8 Pharma Stocks to Watch

Stocks in this article: TEVA MYL PRGO WPI HSP IPXL PRX MNTA

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Insider Monkey) -- UBS Investment Research published a report entitled "UBS Pharma- Large Cap and Specialty" on Jan. 11, 2012.

In their report, Marc Goodman, Ami Fadia, Matthew Harrison, and Derek Yuan discuss the expectations for the fourth quarter of 2011 for selected pharmaceutical companies.

UBS Investment Research also believes that there are many opportunities in the special pharmaceutical sector, with continued synergies, significant deal glows, and robust core growth. Here is what UBS thinks about the following pharmaceuticals:

Teva Pharmaceuticals (TEVA) is a pharmaceutical company that develops, produces, and markets generic drugs.

Teva has been given a buy rating by UBS because the company is in a good position to increase its market share. The company has a good position in the U.S. market and is looking to increase its presence in Europe and other emerging markets. Its earnings growth is expected to be in the double-digits due to the company's strong P-IV pipeline.

UBS is of the opinion that the Cephalon deal is going to benefit the company substantially. Shares of Teva are currently trading at $44.5 per share and are expected to reach a price target of $60, indicating a potential upside of around 35%. John Paulson had $74 million invested in Teva at the end of the third quarter.

Mylan Labs (MYL) engages in the development, manufacture, marketing, licensing, and distribution of generic and branded pharmaceuticals. UBS Investment Research has given the company a buy rating due to an expected increase in its margins. Mylan is going to leverage its low-cost Matrix manufacturing platform which will improve its gross margins.

UBS expects revenues to be around $1.5 billion by the end of 2012. Shares of Mylan are currently trading at $21.7 per share and are expected to reach a price target of $28, indicating a potential upside of 29%. Steve Cohen's SAC Capital boosted its stake in Mylan by 45% during the third quarter.

Perrigo (PRGO) develops, manufactures, and distributes over-the-counter and generic prescription pharmaceuticals and other products. It has been given a buy rating by UBS Investment Research due to Perrigo's store branded business being more sustainable than appreciated.

The company is leveraging its large customer network, its customization abilities, and its low-cost manufacturing. Shares of Perrigo are currently trading at $97 per share and are expected to go north of $115, indicating a potential upside of 18.5%. Ken Fisher had $61 million investe in PRGO at the end of September.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs