Investors should buy shares of Teva Pharmaceutical Industries as the company's turnaround picks up steam, Morgan Stanley analyst David Risinger said Monday.
Risinger upgraded the stock to overweight from equal weight. He also hiked his price target on the stock to $27 a share, implying a 19.5 percent upside from the stock's close on Friday. Teva traded around $22.75 on Monday.
"We expect continued improvement in Teva's financials and investor perception," Risinger said in a note to clients. "Recall that Teva is just a year into its 3-year restructuring plan, and 25% EBITDA upside in 3Q gave us greater confidence that Teva can deliver additional cost cutting and earnings surprise in coming years."