TEVA Should I Buy
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Teva Pharmaceutical Industries Ltd (TEVA) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has positive analyst sentiment and a history of price target upgrades, the technical indicators and financial performance suggest caution. The lack of recent positive trading signals and the absence of significant news catalysts further support a hold recommendation.
The stock's technical indicators are mixed. While the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD is negatively expanding (-0.122), and the RSI is neutral at 43.141. The stock is trading below the key pivot level of 34.811, with support at 32.903 and resistance at 36.719. This suggests limited upward momentum in the short term.
Analysts have consistently raised price targets, with the most recent target from Goldman Sachs at $45, citing a fundamentally improved business profile and a de-risked path to double-digit EPS growth. The company's gross margin increased by 11.50% YoY in Q4 2025, reflecting operational improvements.
The company's Q4 2025 financials show a significant drop in net income (-321.20% YoY) and EPS (-315.79% YoY), which raises concerns about profitability. Additionally, the stock is showing a 60% chance of declining in the short term based on similar candlestick patterns.
In Q4 2025, revenue increased by 11.40% YoY to $4.71 billion, and gross margin improved to 57.4%. However, net income dropped significantly to $480 million (-321.20% YoY), and EPS fell to 0.41 (-315.79% YoY), indicating profitability challenges.
Analysts are broadly positive on the stock, with multiple firms raising price targets recently. Goldman Sachs, Barclays, and Scotiabank have all issued buy or overweight ratings, citing strong execution, expanding branded portfolio, and pipeline catalysts. However, valuation concerns have been noted as the stock trades above historical multiples.
