Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) ended the trading week on Wall Street down 2.8% with falls on four of the five sessions last week. In fact, except for two trading days in early July and one trading day last week, the stock has fallen every day since the beginning of the month, and for the most part, the declines have been slight. Teva, led by CEO Richard Francis, is traded in New York and Tel Aviv with a market cap of $37.3 billion, down from $42 billion in May.
What’s weighing on Teva’s stock? Ori Hershkovitz, managing partner at Bennu Pharma Fund doesn’t see a particular reason for the stock’s weakness but speculates about "expectations building" in the market ahead of the results of the vitiligo drug, which were good, or the decline in the biotech index (XBI) from its recent high.
Regarding the stock's pricing, Hershkovitz notes that there are not many large Western generic companies worth more than $5 billion, so to date Viatris' stock has mainly been used to determine the relative pricing of Teva's generic half, and the fact that Viatris' multiple was slightly above 5 times its projected net profit for 2030 "did not help Teva's pricing much," writes Hershkovitz.
However, recently due to IPOs and price increases at other companies, there are already other large publicly traded generic companies that can be compared with Teva - Sandoz, Apotex and Amneal, and their multiples are around 9.25. At the same time, branded drug manufacturers trade at a multiple of 11 on earnings of 30, so in his estimation, the representative multiple for Teva is 10, and perhaps even higher, since the share of branded drugs in Teva’s revenue is expected to rise sharply by 2030.
Thus Hershkovitz sets a price target of $42 for Teva, a 31% upside on the current price, and continues with his "Buy" recommendation. At the same time, in a review by analyst Dennis Ding of Jefferies ahead of the sector's reports, he estimated that Teva's financial reports on July 29 will be in line with expectations, although he mentioned that the costs related to the recently completed acquisition of Emalex Biosciences will be recognized in the second quarter.
Published by Globes, Israel business news - en.globes.co.il - on July 19, 2026.
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