UPDATE: J.P. Morgan Downgrades Teva Pharmaceutical on Too Much Uncertainty Following CEO Departure

In a report published Monday, J.P. Morgan analyst Chris Schott downgraded the rating on Teva Pharmaceutical (NYSE: TEVA) from Neutral to Underweight, and lowered the price target from $43.00 to $38.00.

In the report, J.P. Morgan noted, “We are downgrading TEVA shares to Underweight from Neutral following the departure of CEO Jeremy Levin and the myriad of uncertainties facing the company. Teva is in a very challenging position, seeking to largely rebuild its pipeline and transition its business model at the same time its largest franchise (Copaxone) faces significant headwinds. With the unexpected departure of the company's CEO following a disagreement with Teva's board, we see added turmoil that has the potential to further delay Teva's business recovery. Even at current depressed levels (7.5x 2014E EPS), we see far more compelling opportunities elsewhere in the space, and along these lines, recommend investors reduce positions in Teva shares.”

Teva Pharmaceutical closed on Friday at $37.12.