Can the share price of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) break through the $50 barrier this year? Goldman Sachs has raised its price target for Teva to $54, 16% above the current price, on the basis of strong profit estimates for each year until 2012. Teva has a Conviction Buy List rating from Goldman Sachs.
The firm's analysts have raised their 2009 EPS estimate 2% to $3.36. The 2010 EPS estimate is lifted 3% to $4.42, 2011 is lifted 1% to $4.72, and the EPS estimate for 2012 is $5.34.
Over the past year in Teva's share price has risen 3.5%, while Nasdaq itself has fallen 25.5%.
Teva has never broken the $50 barrier. On February 22, 2008, its share price reached a peak of $49.9, before falling back to a low of $35.8 on October 10 of that year, about three weeks after the collapse of Lehman Brothers. Two weeks ago, the share price again touched $49, but it has fallen about 5% since then.
Goldman Sachs' profit estimates, from which its price target derives, are much higher than the analysts' consensus, which is for EPS of $2.86 this year and $3.32 next.
Published by Globes [online], Israel business news - www.globes.co.il - on June 24, 2009
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