Investing.com - Jefferies reiterated a Buy rating and $40.00 price target on Teva Pharmaceutical Industries (NYSE:TEVA) shares on Wednesday.
The firm noted that Teva has performed well in 2025, driven by Austedo execution and IRA negotiations that exceeded expectations and removed an overhang. The stock has delivered an 86% return over the past year, reflecting strong operational momentum. The stock currently trades at 9.6x EV/EBITDA, which appears expensive compared to specialty pharma peers entering 2026. Yet with a PEG ratio of just 0.13, the company trades at a low P/E relative to near-term earnings growth, according to InvestingPro analysis. The platform's Fair Value assessment suggests the stock is fairly valued at current levels, with analysts setting price targets ranging from $28 to $45.
Jefferies argued that room remains for multiple expansion if investors begin evaluating Teva through a biopharma lens rather than a specialty pharma framework. The key difference from traditional large-cap biopharma companies stems from pipeline conviction and positive terminal value reflecting R&D productivity, which historically has been zero for Teva.
The firm stated that 2026 will be an important year for convincing investors, particularly generalists, that Teva possesses a productive R&D engine. Multiple pipeline catalysts are expected in 2026 to support this thesis.
Jefferies noted that Teva's TL1A was discovered internally and targets a mechanism that pharmaceutical companies have valued at $7 billion to $10 billion.
In other recent news, Teva Pharmaceutical Industries has seen several notable developments. The U.S. Food and Drug Administration accepted Teva's New Drug Application for a monthly olanzapine injection aimed at treating schizophrenia, potentially improving patient adherence. Additionally, a significant legal ruling favored Teva, as the United States Court of Appeals for the Federal Circuit found no infringement on Corcept Therapeutics' patents by Teva. Analyst firms have also shown interest in Teva's prospects. Barclays reiterated its Overweight rating and a $38 price target, highlighting the stock's volatility due to Middle Eastern conflicts. Piper Sandler maintained its Overweight rating and increased its price target to $41, driven by optimism about Teva's Austedo outlook. The firm also discussed Teva's advancements in inflammatory bowel disease treatments, particularly its TL1A-directed therapies. These developments reflect Teva's ongoing efforts in drug innovation and strategic growth.