Investment bank Jefferies Names Teva a Top Pick for 2026 and Raises Target Price to $40

 Investment bank Jefferies has named Teva Pharmaceutical Industries as one of its preferred stock picks for 2026, raising its price target to $40 per share from $29 and reaffirming a “buy” rating.

The new target implies an upside of about 29% from Teva’s current share price of roughly $31. The note was authored by analysts Dennis Ding, Anthea Lee and Georgia Bank.

Strong 2025 Performance, Reduced Uncertainty

Jefferies said Teva delivered a strong performance in 2025, driven in part by the continued growth of its neurological drug Austedo and progress in negotiations related to the U.S. Inflation Reduction Act. The latter, the analysts said, significantly reduced regulatory uncertainty that had weighed on the stock.

Teva currently trades at an enterprise value-to-EBITDA multiple of about 9–10. While that level may appear elevated compared with some specialty pharmaceutical peers, Jefferies said the company’s improved business mix and more stable cash flow justify potential multiple expansion.

Renewed Confidence in R&D Engine

“The key difference between Teva and other large biopharma companies stems from the belief in the drug pipeline and the attribution of a positive terminal value reflecting R&D productivity, which historically has not been possible for Teva,” the analysts wrote.

Jefferies said 2026 will be a critical year for convincing investors that Teva has rebuilt a productive research and development engine, pointing to multiple clinical catalysts that could influence how the market values the company.

Key Clinical Catalysts in 2026

Among the anticipated milestones:

• TEV-408 (IL-15 antibody): Results from clinical trials in vitiligo and celiac disease are expected in the first half of 2026.

• Duvakitug (TL1A antibody): Maintenance data from a Phase 2 trial in ulcerative colitis and Crohn’s disease are expected in the second quarter. Jefferies cited estimated remission rates of 55–65% in ulcerative colitis and an endoscopic response rate of around 40% in Crohn’s disease.

• TL1A category momentum: The analysts noted that several readouts from competitors in the TL1A space during 2026 could help validate the broader therapeutic class and reduce perceived risk around Teva’s program.

Later-Stage Programs

In the second half of 2026, Teva is expected to publish a clinical feasibility assessment for Emrusolmin, being developed for multiple system atrophy (MSA). While Jefferies cautioned that alpha-synuclein biology remains unproven, it said clearing the feasibility stage could materially improve the program’s probability of success.

In addition, primary results from the Phase 3 FLAIR trial of DARI, an asthma treatment, are expected toward the end of 2026 or in early 2027.

Asthma Market Opportunity

Regarding DARI, Jefferies said it is focused on whether the drug can demonstrate roughly a 25% reduction in severe asthma attacks — a benchmark comparable to AstraZeneca’s Airsupra, currently the only approved drug in this category.

The analysts added that demonstrating a clear benefit in pediatric patients under 18 would be an important differentiator for Teva in the asthma market.

Jefferies concluded that the combination of regulatory clarity, improving fundamentals and a pipeline rich with near-term data supports a more constructive view of Teva’s valuation heading into 2026.