Teva Pharmaceutical Industries Limited (TEVA): A Bull Case Theory

Ricardo Pillai

Thu, May 15, 2025, 8:30 AM 3 min read

We came crossed a bullish thesis on Teva Pharmaceutical Industries Limited (TEVA) connected Substack by Kontra. In this article, we volition summarize the bulls’ thesis connected TEVA. Teva Pharmaceutical Industries Limited (TEVA)'s stock was trading astatine $16.89 arsenic of May 14^th. TEVA’s guardant P/E is 6.47 according to Yahoo Finance.

A close-up changeable of assorted types of medicines connected a table, illustrating the specialty and generic products offered by the pharmaceutical company.

Teva Pharmaceuticals, the world’s largest generic drugmaker, is undergoing a singular transformation, arsenic evidenced by its Q1 2025 results—marking its ninth consecutive 4th of gross growth. Revenue grew 2% year-over-year to $3.89 billion, portion adjusted EPS of $0.52 bushed expectations. Free currency travel surged 238% year-over-year, highlighting improved operational subject nether CEO Richard Francis, whose strategy to displacement Teva toward innovation is taking hold. Once seen arsenic a stagnant generics firm, Teva is present gaining credibility successful caller cause development, arsenic shown by the show of Austedo, which grew 39% and is connected way for $2 cardinal successful income by 2025, Ajovy (+26%), and Uzedy (+156%). Innovative medicines present lend a increasing stock of revenue, signaling a structural displacement successful the business. Meanwhile, Teva’s generics business, inactive a halfway foundation, grew 3% and continues to present stableness and scale. Its immense generics pipeline, targeting $55 cardinal worthy of originator drugs, volition grow with caller launches successful analyzable generics and biosimilars, supporting a dual-engine exemplary that balances currency procreation with borderline expansion. Teva’s cost-cutting initiative—the “Acceleration Phase”—is acceptable to trim costs by $700 cardinal by 2027, streamline operations, and assistance margins to 30%, aided by AI adoption and an 8% simplification successful planetary headcount.

Financially, Teva has made large advancement successful deleveraging, with a wide extremity to bring nett debt-to-EBITDA beneath 2x. Operational risks similar generic Revlimid losses and tariffs are being mitigated done manufacturing spot and ratio gains. With a revitalized strategy, coagulated momentum, and an undervalued stock, Teva offers a compelling concern accidental with imaginable 12-month upside to $25–27.

Teva Pharmaceutical Industries Limited (TEVA) is not connected our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge money portfolios held TEVA astatine the extremity of the 4th fourth which was 61 successful the erstwhile quarter. While we admit the hazard and imaginable of TEVA arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is much promising than TEVA but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.