Teva Pharmaceutical Industries Ltd (ADR) (TEVA)

jtpaul (78.88) Submitted: 5/28/07 12:55 PM : Start Price: $32.04 TEVA Score: 42.66

Teva Pharmaceutical Industries Limited engages in the development, manufacture, and marketing of generic and human pharmaceuticals, active pharmaceutical ingredients (APIs), and animal health pharmaceutical products. WIth the aging Baby Boomers population some pharmaceuticals have to fill any portfolio. Here is one that looks like it could add some value.

TEVA has a 10 year average historical Sales growth of approximately 25.7% and a 10 year average historical EPS growth of approximately 33%. Because these numbers are difficult for any company to maintain I will use 20% as the projected growth for both Sales and EPS over the next five years. The 5 year historical average PE high is 25.4 and the low is 15.6. Using a recent severe estimate low price of $22.82 to determine my upside/downside ratio should make the upside down ratio approximately 6.1 to 1. Add to this a yield of .9% and a five year appreciation potential of 262.9% and I believe that this stock is a BUY up to $63.64 and a SELL at $104.47 for the next five years.

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