JPMorgan downgrades Teva Pharmaceutical Industries (NYSE:TEVA) and Endo International (NASDAQ:ENDP) to Neutral from Overweight citing the need for a "clearer picture of fundamentals." Price targets have been lowered to $40 (20% upside) and $20 (55% upside), respectively.
It doesn't expect a bottom in the generics industry until the second half as pricing pressures continue. Price erosion could be high single-digit to low double-digits this year. It adds that Mylan (NASDAQ:MYL) and Akorn (NASDAQ:AKRX) are in the best position.
TEVA is up a fraction and ENDP down a fraction in premarket trading.
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