Citi Sees EPS Growth For Teva Pharmaceutical Industries (TEVA)

Citi Investment Research & Analysis analysts John Boris, Morten Marott, Timothy W Chou and Nirav Jhaveri rated shares of Teva Pharmaceutical Industries (Nasdaq: TEVA) a Buy, with a price target of $72 per share.

The analysts noted that Teva Pharmaceutical Industries recently reiterated that its 2nd quarter is expected to be stronger than its 1st quarter and that Ratiopharm should add further strength to its results in 2011.

Although Teva Pharmaceutical Industries experienced its highest year-to-date market growth in Greece, the company has had no negative impact from the problems facing the country.

The Citi Investment Research & Analysis analysts wrote, "we rate the shares of Teva Buy/High Risk (1H) with a $72 price target. Downside seems limited as Teva currently trades at a trough valuation to its historical average forward P/E multiple, while still generating significant sales and EPS growth. Teva has a more diversified business model than its peers and is the only company in the peer group that pays a dividend. Teva has one of the highest revenue growth rates in the industry. We estimate 2009-‘12E revenue & EPS CAGRs of 12% (generally in line with the peer group average) and 17% (generally in line with the peer group average). Longer term growth is driven by the increasing share of the branded segment, especially by its injectable multiple sclerosis therapy Copaxone."