|Forbes.com, Fall, 2011. This article was placed on behalf of the U.S. based equity research effort of institutional broker and investment bank Canaccord Genuity. It was part of a series of articles developed under an agreement with forbes.com to work with a variety of contributors and assist them in delivering actionable investment ideas each week. The site, forbes.com is one of the top 500 sites in the world with nearly 10 million subscribers and approximately 100 million page views a month.|
Following TEVA’s Q3 earnings, Canaccord analyst Randall Stanicky reaffirmed his BUY rating and $52 price target, noting that the stock remains his top idea on what he thinks is “an inflection point both on the stock path . . .”
Following the earnings report Mr. Stanicky noted three key points for investors:
(1) Achievable Q4 EPS that now offers visibility and upside potential. . . “Bottom line, visibility has improved, the bar has been lowered and catalysts lie ahead.
(2) An update on 2012 ahead of year-end that he thinks will come with a new capital allocation philosophy . . . “Many, including us, are seeing a more aggressive share buy-back as prudent at current levels.”
(3) A valuation that is still at a notable discount to pharma. He noted that “When stripping out US Copaxone and looking at TEVA shares relative to big pharma – trading at 10.5x 2013 P/E – TEVA trades at a ~ 20% discount.”