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Teva Pharmaceuticals (Nasdaq:TEVA) made Merrill Lynch's list of its top ten stock picks in emerging economies.

The U.S. investment house, which covers a great deal of markets the world wide, defines emerging economies as non-U.S. or European ones.

Its top-ten list of hot stocks consists mainly of companies from South Korea, Taiwan and Mexico and then Israel's Teva.

Teva is the strongest player in the world generic drugs market, Merrill Lynch writes, but it is traded at a discount compared with its peers.

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Investment in emerging economies has regained its allure, the analyst writes, for two main reasons: the low price level of companies compared with their developed-market peers, and assessments that these companies are well-positioned to take advantage of the ending global recession.

In early May Merrill Lynch rated Teva a Strong Buy and set a price target of $80. The generic drug company's price target among analysts ranges from $78 to $85, some 25% to 36% above its market level.