Compared to its pharmaceutical peers, TEVA is now very undervalued. I’m therefore endorsing it as a buy.
Teva’s decision to walk away from negotiations with U.S. federal prosecutors over price-fixing charges could worsen the stock’s 5-year price return of -80.41%.
Teva’s act is not out of obstinacy. It’s a well-calculated gambit. Pres. Trump is now taking hydroxychloroquine as his anti-COVID-19 preventive medicine.
Teva donated millions of hydroxychloroquine doses to many countries including the United States. It is unlikely that U.S. federal prosecutors will go after Teva this year.
Better go long on TEVA now. The company’s roster of anti-psychotic drugs could get a sales boost from quarantine rules around the world.