Despite CEO Jeremy Levin's promise to make Teva (TEVA -0.6%) "the most indispensable medicines company in the world," the stock has "had one of the weakest performances this year of any large-cap drug maker trading on the New York Stock Exchange," writes Barron's Johanna Bennett.
Some of the relative weakness is undoubtedly tied to worries about Copaxone which, thanks an appeals court's decision to invalidate a 2015 patent, could face generic competition as early as next May. This will make it effectively impossible for TEVA to convert users to a longer acting dosage (which the company expects will be approved next year) in time to head off rivals.
Nevertheless, Bennett says investors should give Levin some time: "Levin's aim to reshape the company and revitalize profit growth by cutting costs and sharpening the focus of its research pipeline should bear fruit."
At only 7.3x forward earnings, Bennett says the shares are a steal.
See also: Goldman cuts TEVA to Sell.