Dear Teva Pharmaceutical Stock Fans, Mark Your Calendars for September 14
Anushka DuttaSun, August 2, 2026 at 5:14 PM GMT+3 4 min read
Israeli biopharma company Teva Pharmaceutical Industries Limited (TEVA) is set to replace its American Depository Shares (ADSs) with the direct listing of its ordinary shares on the NYSE. The shares will start trading on Sept. 14 after the ADSs stop trading, with the ADS-holders receiving a one-for-one exchange. The move highlights the company's focus on United States market growth, aiming to broaden its shareholder base and optimize its cost of capital. This also opens up the potential for the stock to be included in major indices, potentially bringing greater visibility and institutional investors' attention.
We take a closer look at Teva Pharmaceutical before that happens.
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About Teva Pharmaceutical Stock
Teva Pharmaceutical Industries is a global biopharmaceutical company known for its large generics business and growing portfolio of innovative medicines. It operates across North America, Europe, and international markets, with activities spanning complex generics, biosimilars, specialty medicines, and selected branded products.
The company focuses on making medicines more accessible while also investing in research, development, and manufacturing. Teva's global headquarters is in Tel Aviv, Israel, and it has a market capitalization of $40.71 billion.
Investors have been rewarding Teva's "Pivot to Growth" strategy under CEO Richard Francis. The company has shifted focus from low-margin generic drugs to high-margin innovative ones. Investors have backed the stock due to stronger branded-drug sales, especially Austedo, Ajovy, and Uzedy, which have helped offset pressure in generics.
Over the past 52 weeks, Teva's stock has gained 108%, while it is up 12.2% year-to-date (YTD). As strong revenue growth underscored its latest results alongside solid guidance, the stock gained 13.63% over the past five days. However, the ADR had reached a 52-week high of $37.35 on Feb. 3, but is down 6.3% from that level.
On a forward-adjusted basis, Teva's price-to-earnings (non-GAAP) ratio of 16.53 times is lower than the industry average of 19.51 times.
Teva Pharmaceutical Leans on Branded-Drug Momentum to Boost Q2 Results and Outlook
Teva's second-quarter results were driven by its branded medicines, which added significantly to its topline. Although the company's total revenues dropped marginally year-over-year (YOY) to $4.14 billion, this was mainly driven by a decline in generic revenues, which, in turn, were influenced by lower revenues from lenalidomide capsules (a generic version of blood cancer drug Revlimid).
On the other hand, its key innovative brands' top line collectively grew 43% in local currency (LC) to over $1 billion. Austedo (tardive dyskinesia and Huntington's chorea treatment) global revenues grew by 40% in LC to $696 million, Ajovy (preventive treatment of migraines) grew 56% in LC to $244 million, and Uzedy (schizophrenia and bipolar I disorder treatment) increased 43% to $77 million.
Apart from the established branded drugs that are propelling its prospects, Teva has drugs in its pipeline that can make a big difference in the future. The company acquired Emalex Biosciences in June for approximately $700 million in cash, strengthening its late-stage pipeline through ecopipam, a therapy for Tourette syndrome. Teva also submitted an NDA application for the drug to the FDA in the same month. The acquisition resulted in a $726 million expense in Q2.
However, the cost has not impaired Teva's outlook. In fact, the company raised the outlook for its key innovative brand medicines, now expecting a combined revenue of $3.70 billion for the current year, reflecting approximately 17% YOY growth.
Wall Street analysts are tepid about Teva's future earnings. For the current fiscal year, EPS is projected to decline 29.8% annually to $1.98, followed by a 53.5% growth to $3.04 in the next fiscal year. Analysts expect the company's EPS to drop by 5.3% YOY to $0.71 for the third quarter of fiscal 2026.
What Do Analysts Think About Teva Pharmaceutical's Stock?
In light of Teva's strategic positioning in the healthcare sector, Piper Sandler analysts recently maintained an "Overweight" rating on the stock, while raising the price target from $42 to $44. Jefferies analyst Dennis Ding maintained a "Buy" rating and kept a $40 price target. These reaffirmations prove that Teva's growth and strategic pivot are impressing analysts.
Teva Pharmaceutical's stock has become a popular name on Wall Street, with analysts awarding it a consensus "Strong Buy" rating overall. Of the 11 analysts rating the stock, a majority of 10 analysts have given it a "Strong Buy" rating, while one analyst is taking the middle-of-the-road approach with a "Hold" rating. The consensus price target of $38.73 represents a 9.6% upside from current levels. Moreover, the Street-high price target of $50 indicates a 42.8% upside.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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