On January 29, 2026, Scotiabank maintained its Outperform rating for Teva Pharmaceutical Industries and lifted its 12-month price target from $35 to $40. The brokerage cited Teva’s resilient branded-drugs portfolio and the recent milestone payment received for ulcerative colitis and Crohn’s disease programs as catalysts for continued upside. This move reflects growing confidence in Teva’s Pivot to Growth strategy and signals robust analyst conviction in the stock’s medium-term trajectory.

Teva reported a jump in fourth-quarter profit, driven by strong global sales of its key branded products and a development milestone payment tied to late-stage studies of anti-TL1A therapies. The milestone payment contributed approximately $250 million to Q4 earnings, while branded drugs collectively delivered triple-digit year-over-year sales growth. This performance marks the third consecutive quarter of profit outperformance relative to consensus expectations.

For the first time, Teva’s lead innovative therapies—Austedo, Ajovy and Uzedy—each surpassed combined quarterly revenues of $1 billion. Austedo sales rose 34% year-over-year to $2.26 billion, outpacing the guidance range of $2.05–$2.15 billion; Ajovy grew 30% in local currency to $673 million; and Uzedy advanced 63% to $191 million. These results underscore Teva’s successful shift toward high-margin specialty products and its emerging role as a biopharmaceutical growth engine.

Teva projects full-year 2026 revenues between $16.4 billion and $16.8 billion, and adjusted EPS of $2.57–$2.77, reflecting anticipated contributions from Austedo sales of $2.4–$2.55 billion, Ajovy of $750–$790 million, and Uzedy of $250–$280 million. The company also forecasts operating income of $4.55–$4.8 billion and adjusted EBITDA of $5.0–$5.3 billion. Management highlighted a series of late-stage pipeline readouts in immunology and neurology, including the expected FDA decision on olanzapine LAI, as potential multi-billion-dollar value drivers. Investors have shown increased engagement, with daily trading volumes consistently exceeding two million shares.