Citibank analysts recommend Teva stock, emphasizing that the Ratiopharm acquisition
is logical on a financial basis and strategically for the generic pharma firm.
"We love this acquisition" said John Boris. "It will add 2.3 billion dollars to the company’s revenues - very close to its basic target of achieving a total growth of 5 billion until 2015.”
The 2011 forecast is that Teva will gain $5.22 per share (versus $4.93 on the last forecast). In 2013, growth of $6.56 is projected (the last one was $5.96).
Citi is calling the price that Teva paid very attractive even compared to the price that it paid for Barr on 2008. Ratiopharm is mainly active in Europe – 47% in Germany, 31% in other parts of Europe – although, the company does 12% of its business in Canada.
The acquisition will turn Teva into a leading seller in Europe.
Compared to other generic pharma companies, Teva is considered in a lower price bracket at $62 and the Citi specialists believe that a reasonable price would be around the 66-dollar mark and that the stock may reach a high of $72 in the future.
Reprinted with permission from Shalom Life
RSS
