Teva Pharmaceuticals (TEVA)

We are initiating coverage on Teva Pharmaceuticals (TEVA - Snapshot Report) with a Buy rating and a price target of $52. We are impressed with the company's strong performance in 2008 despite the global slowdown and are optimistic on growth prospects.

We expect Teva to continue posting strong revenues and earnings going forward thanks to new product launches, both generic and branded. We are also pleased to see Teva's progress with its branded and biogenerics pipeline. Biogenerics should help drive growth in the long-term.

Meanwhile, the recent acquisition of Barr Pharma should help Teva strengthen its position in the U.S. and expand its presence in Europe. We believe that the current share price represents an attractive entry point for long-term investors and recommend purchase up to the $52 level.