Two Israeli stocks were included in the 2025 top picks list of US analysts. Choose Bank of America Teva Pharmaceutical Industries Limited (New York Stock Exchange: Tifa; level: Tifa as one of its top picks in its survey of biopharmaceuticals while Cantor Fitzgerald chose the website building platform company WEX.COM LIMITED. (Nasdaq: Weeks) as the best choice in the Internet sector.
The drug that boosted Teva’s stock price
Teva Pharmaceuticals, led by CEO Richard Francis, is currently trading on Wall Street with a market cap of $24.6 billion, after rising 111% in 2024. Bank of America raised its price target on Teva stock to $26 from $25, a premium of 20.4 %. Above the current stock price.
Bank of America writes, “2025 will be a key year in stabilizing the company’s financial position.” Bank of America mentions Teva’s plans to sell its active ingredients division and its positive financial results as well as the estimated reduction in its debt and an accelerated decline in leverage. “In our view, Teva’s turnaround story benefits from maximizing its asset portfolio and reducing asset risk in developments such as a treatment for schizophrenia and dovacetog for inflammatory bowel disease, which is entering Phase III.”
Bank of America lists several factors that could have a positive impact on the stock next year, including quarterly results – and estimates that Teva will be able to continue to show mid-single-digit growth, with some upside potential; a plan to sell its active ingredients division, which could accelerate the deleveraging process; And publish additional data about duvakitug. As a reminder, this drug, which Teva is developing in collaboration with Sanofi, achieved strong results in a phase 2 trial last month, boosting Teva’s stock.
Bank of America believes Teva’s strong product pipeline leaves room for another increase in target price in the future and supports a higher multiple.
Wix could become a takeover target
In its survey of the internet industry, Cantor Fitzgerald picked Wix, led by CEO Avishai Avrahami, as a top pick alongside Meta, Amazon and DoorDash. Wix is currently trading on Wall Street with a market cap of $12.1 billion after rising 74% in 2024. Deepak Mathivanan, senior equity research analyst at Cantor Fitzgerald, recommends an “overweight” rating on Wix and raises his price target from $240 per share to $260 $. A premium of 18% over the current share price. In his estimation, Wix has a good product roadmap, which should help it grow its portfolios. “We believe Wix still has significant pricing power,” he writes, adding that the company’s market outlook appears reasonable and that new launches of AI products will help it expand its multiples at which it trades.
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Cantor Fitzgerald, who is bullish on the entire sector, sees Wix as a potential target for an acquisition.
Published by Globes, Israel Business News – en.globes.co.il – on January 8, 2025.
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