Teva Pharmaceutical Industries Ltd (TEVA - Get Report) stock fell 2.67% to $17.49 Wednesday after Citigroup cut its rating for the struggling generic drug maker to "neutral" from "buy" and slashed its price target to $19 from $32.
"We acknowledge we have been wrong," Citi wrote. The bank had typically taken a constructive view on Teva. But the bank said issues that came to light in Teva's August 3 second quarter earnings release make it clear right now is a bad time to buy Teva.
Among Teva's chief problems is its lack of senior leadership, struggling credit situation and a broader strain on generic drugs pricing across the industry. Citi said these issues are addressable over time, but "the realization of value will likely be a multi-year process."
Teva stock has crumbled almost 45% since its last earnings release and lost its title as Israel's biggest public company this week. Shares traded at $17.36 Wednesday afternoon, down from a 52-week high of $54.83 set last August.
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