Update shared on09 Oct 2025
Fair value Increased 1.40%Teva Pharmaceutical Industries saw its analyst price target increase modestly from $23.89 to $24.22 per share. Analysts cite anticipated relief rallies and favorable prospects for the company's Austedo pricing strategy.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight that the recent price target increase reflects growing optimism around Teva's valuation, especially as the company navigates important upcoming catalysts.
- Expectations for a relief rally are based on the anticipated disclosure of Austedo's IRA pricing. This could further boost investor confidence if details are favorable.
- Insights from payors suggest the potential for a 40% discount on Austedo's list price. Analysts believe this could enhance market access and drive prescription volume.
- With continued momentum in Teva's innovative product pipeline and disciplined execution, growth prospects are seen as improving. This contributes positively to the company's longer-term outlook.
- Bearish analysts caution that while a large discount on Austedo pricing could drive volumes, it also poses a potential headwind for margin expansion and overall profitability.
- Concerns remain about the broader pricing environment as legislative and regulatory changes may introduce additional uncertainty for Teva's future earnings trajectory.
- The stock's relief rally could be short-lived if Austedo's actual IRA price or subsequent guidance falls short of market expectations.
- Execution risks persist, particularly in successfully capitalizing on projected growth opportunities within a competitive and evolving pharmaceutical landscape.
What's in the News
- Teva Handok received South Korean regulatory approval for UZEDY, a long-acting injectable risperidone for schizophrenia. Commercial performance reached $117 million in net sales in 2024 and $95 million in the first half of 2025 (Key Developments).
- The FDA approved and Teva launched a generic version of Saxenda (liraglutide injection), a product with $165 million in U.S. annual sales as of June 2025 (Key Developments).
- AJOVY received FDA approval for preventive treatment of episodic migraine in children and adolescents, becoming the first CGRP antagonist with this pediatric indication in the U.S. (Key Developments).
- Teva reaffirmed 2025 earnings guidance and maintained expected annual revenues of $16.8 billion to $17.2 billion (Key Developments).
- The company reported consolidated intangible asset and long-lived asset impairment charges for Q2 2025. These charges were lower than the prior year (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from $23.89 to $24.22 per share, reflecting a modest increase in analysts’ fair value assessment.
- Discount Rate has decreased marginally from 8.34% to 8.34%, indicating a minimal change in the perceived risk attached to Teva’s future cash flows.
- Revenue Growth projection has increased from 2.29% to 2.34%, suggesting a slight improvement in expected top-line expansion.
- Net Profit Margin estimate has edged down from 8.21% to 8.20%, indicating a minor adjustment to forecasted profitability margins.
- Future P/E multiple is up slightly from 24.73x to 25.08x, pointing to a modestly higher valuation on projected earnings.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.