Teva's Bold $700M Gamble: Will It Be Enough to Rescue Its Plummeting Stock?

Khac Phu Nguyen

Mon, May 12, 2025, 1:14 PM 1 min read

JP Morgan analysts see a imaginable lifeline for Teva Pharmaceutical (NYSE:TEVA) aft upgrading the banal to Overweight and raising the terms people to $23. The determination follows Teva's announcement of a $700 cardinal cost-cutting program, aimed astatine offsetting the anticipated gross driblet from gRevlimid portion inactive investing successful its pipeline. JP Morgan analysts judge this inaugural could assistance Teva adjacent the spread toward its 30% operating borderline people by 2027. Despite the stock's 20% driblet YTD, immoderate analysts are starting to spot a way forward, arsenic reflected successful the existent consensus: 3 Buy, 5 Outperform, and 3 Hold ratings.

• Warning! GuruFocus has detected 2 Warning Signs with TEVA.

Teva's strategical pivot comes astatine a clip erstwhile investors are scrutinizing its quality to negociate fiscal pressures portion stabilizing margins. JP Morgan's analysts noted that Teva's borderline trajectory successful 2026-2027 was a cardinal concern, peculiarly fixed the dual challenges of declining gRevlimid income and indispensable R&D investments. The latest standing breakdown, however, shows a cautious displacement the fig of Hold ratings has remained consistent, suggesting immoderate skepticism astir Teva's quality to execute its cost-cutting program effectively.

For investors, the question present is whether Teva tin present connected its borderline targets without sacrificing semipermanent growth. With JP Morgan's endorsement and a recently defined outgo structure, the marketplace whitethorn beryllium reassessing the stock's imaginable upside. But with aggregate Hold ratings inactive successful place, Teva's quality to navigate the adjacent fewer quarters could beryllium pivotal successful swaying capitalist sentiment and moving the banal person to the $23 target.

This nonfiction archetypal appeared connected GuruFocus.