Goldman Sachs Starts Teva Pharma (TEVA) at Buy on Branded Drug Growth
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of billionaire Stan Druckenmiller's top stock picks with huge upside potential. Goldman Sachs analysts began coverage of Teva Pharmaceutical Industries Limited (NYSE:TEVA) with a Buy rating and a price target of $24, on June 6. The analysts' optimistic view was driven in part by a strengthening core business and growth possibilities in the branded segment.
According to the analysts, Teva's branded segment, which includes medications like Austedo, Uzedy, Ajovy, and LAI olanzapine, has significant growth potential. They estimate that these assets will generate substantial growth in fiscal year 2027, around 10% higher than the mainstream projections. This optimism stems from recent script data and commercial investments, including direct-to-consumer marketing.
On the other hand, Goldman Sachs analysts see modest growth in the generics sector over the upcoming years. Although Teva's growing portfolio of biosimilars—five more are anticipated to be introduced in the United States between fiscal years 2025 and 2027—offers potential, the gRevlimid settlement's expiration in 2026 may offset this growth.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a multinational pharmaceutical company based in Israel. Although generic medications are Teva's primary area of expertise, the company also has branded drug assets.
While we acknowledge the potential of TEVA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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