Teva Pharmaceutical Industries (TEVA) has seen its shares under pressure for quite some time now. A lot of investors seem quite concerned about the company’s current debt position. At the same time they do not know what to expect from the future after the large acquisition that was made not too long ago. But the future actually looks quite good for the company. And even during these uncertain times, Teva offers its shareholders a lot of value in terms of dividend yield. After a long time of seeing its share price decline, Teva could be in for a welcome turnaround.
Lack of revenue growth
While Teva is seeing growing revenue yoy, most of this results from the Actavis Generics acquisition. Without this, the company saw revenue decline 30% sequentially which seems like quite an alarming decline. This is especially the case when we think about the loss of exclusivity of Copaxone. But in reality I do not believe that the stock will suffer too much as a result of this. Because the problems that this company has are mostly just temporary. And pessimism surrounding the stock can hardly get any worse.
