Story updated at 10 a.m. to reflect market activity.
Shares of Teva fell 0.2% to $53.90 in morning trading.
The analyst firm also raised its EPS estimates for the pharmaceutical company through 2016 due to higher base sales.
"New mgt continues to provide its new strategy going forward, and yet we are still not sure what is really different from the old strategy," UBS analyst Marc Goodman wrote. "The emphasis on more profitable growth in generics and on growth from key therapeutic areas such as pain and respiratory doesn't sound much different from the old strategy. The extra $300M to the bottom line is new from the new mgt and certainly a positive but not a surprise and not an upside to investors given mgt's comments most of the year on this topic."
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Separately, TheStreet Ratings team rates TEVA PHARMACEUTICALS as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TEVA PHARMACEUTICALS (TEVA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TEVA's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 18.1% when compared to the same quarter one year prior, going from $630.00 million to $744.00 million.
- The gross profit margin for TEVA PHARMACEUTICALS is rather high; currently it is at 62.37%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.87% trails the industry average.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.76% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- TEVA PHARMACEUTICALS has improved earnings per share by 17.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEVA PHARMACEUTICALS reported lower earnings of $1.50 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($4.87 versus $1.50).
- You can view the full analysis from the report here: TEVA Ratings Report