It is now nearly a year since Teva announced its acquisition of Actavis from Allergan for $40.5 billion.
Deutsche Bank's analysts believe that Actavis's contribution to Teva will be less than they previously expected. They lowered their forecast by 8%, based on Actavis's first quarter results (in which sales were 20% below the corresponding quarter last year - they mention that Teva said that this decline was expected, because the corresponding quarter last year was a strong one) and a more conservative expectation for the rest of the year. On the other hand, Deutsche Bank expects sales of Copaxone to make a larger contribution.
It is now nearly a year since Teva announced its acquisition of Actavis from Allergan for $40.5 billion.
The changes have caused the analysts to lower their forecast profit per share by $0.04 to $5.20 for 2016, and by $0.13 to $5.51 for 2017. As a result, they are lowering their target price for the Teva share by $3 to $68, 29.8% higher than the market price, and recommending "Buy" for the share.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2016
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Teva photo: PR