Market News

Teva Gains 6.4% on Another Opioid Case Settlement

Teva Pharmaceutical Industries’ (NYSE: TEVA) affiliate Teva Pharmaceuticals announced to have settled opioid-related claims with the state of Florida. TEVA stock gained 6.4% on Wednesday.

Israel-based Teva engages in the development and production of medicines. The stock has gained 12.6% so far this year.

A settlement has been reached with the state and its subdivisions under which Teva will pay $77 million to the state over a period of 15 years and will provide Narcan (naloxone hydrochloride nasal spray) worth $84 million over a decade.

Teva has entered into settlements with several states, including Texas and Rhode Island, in recent months. However, the company is yet to settle similar cases with multiple states, especially New York, where it has been found guilty in New York’s opioid epidemic.

Analysts’ Take

Last week, Bernstein analyst Aaron Gal upgraded Teva’s rating to Buy from Hold with a price target of $11, implying 17.3% upside potential from current levels.

The analyst is optimistic about reduced debt levels, stable earnings and free cash flow of about $2 billion. Also, Gal is of the opinion that the opioid settlements remain within Teva’s reach.

Based on one Buy and five Holds, the stock has a Hold consensus rating. TEVA’s average price target of $10.67 implies 13.8% upside potential from current levels.

Hedge Fund Trading Activity

TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Teva is currently Very Negative, as the cumulative change in holdings across all seven hedge funds that were active in the last quarter was a decrease of 42.7 million shares.

Takeaway

Teva’s improving fundamentals and dominant position in the world’s largest generic market continue to provide support to the stock. However, its persistent involvement in litigation issues over the past few years may be concerning for the stock’s performance.

Download the TipRanks mobile app now 

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. 

Read full Disclaimer & Disclosure

Related News:
Citi’s India Divestment Plan Takes Shape
BioNTech’s Q4 Earnings Impress Investors
Will DTE and Lyft Partnership Benefit EV Drivers?

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More