Although Teva Pharmaceutical saw a down year last year and generally had poor performance in the past several months, key financial analysts see the company as a sound financial investment and strongly recommend that investors set aside their concerns and purchase company shares. These analysts claim that Teva Pharmacutical is undervalued by as much as 20%, and those numbers are likely to shrink back toward the company’s actual value in the coming months.
Poor performance for a few months or even a year doesn’t merit the kind of valuation drop that Teva has seen lately. Over each of the next several years, financial analysts are predicting that the company’s share valuations will increase by 12-15% each year. Buying now at a bargain price seems ripe for investors trying to make a relatively quick profit on a reliable company that simply hasn’t performed as expected.
One of the reasons that the financial industry believes that Teva will bounce back in a major way is its variety of products and services. The company offers multiple drugs that have become important brands, as well as generic options and pharmaceutical ingredients which are sold to a number of different actors. The company sells drugs that treat serious conditions such as multiple sclerosis, narcolepsy, sleep apnea, Parkinson’s disease, asthma, bronchospasm, anemia, and leukemia.
The company is continuing to develop drugs to treat similarly difficult illnesses. As more Americans age and with the anticipated increased participation in the healthcare industry in response to United States healthcare reform, there is likely to be a larger market for these expensive drugs offered by Teva.