Two Israeli stocks have been included in the top picks 2025 lists of US analysts. Bank of America chose Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA as one of its top picks in its biopharma survey while Cantor Fitzgerald chose website building platform company Wix.com Ltd. (Nasdaq: WIX) as a top pick in the Internet sector.
The drug that boosted Teva's share 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 has raised its price target for Teva's share to $26 from $25, a 20.4% premium over the current share price.
The Bank of America writes,"2025 will be a key year in stabilizing the company's financial profile." 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 accelerated fall in leverage. "In our opinion Teva's turnaround story benefits from the maximization of its assets portfolio and reduction in the risk of assets in developments like the treatment for schizophrenia and duvakitug for inflammatory bowel disease, which is entering Phase 3."
Bank of America lists several factors that could have a positive impact on the stock in the coming year, including quarterly results – they estimate that Teva will be able to continue to show mid-single-digit growth, with some upside potential; a plan to sell the active ingredients division that could accelerate de-leveraging; and publication of additional data about duvakitug. As a reminder, this drug, which Teva is developing in collaboration with Sanofi, reported strong results in a Phase 2 trial last month, boosting Teva's stock.
Bank of America believes that Teva's strong product pipeline leaves room for another target price increase in the future and supports a higher multiple.
Wix could become an acquisition target
In its survey of the Internet sector, Cantor Fitzgerald selected Wix, led by CEO Avishai Abrahami, as a top pick along with Meta, Amazon and DoorDash. Wix is currently trading on Wall Street with a market cap of $12.1 billion after rising by 74% in 2024. Cantor Fitzgerald senior equity research analyst Deepak Mathivanan recommends an "Overweight" rating on Wix and raises his price target from $240 per share to $260, an 18% premium on its current share price. In his estimation, Wix has a good roadmap of products, which should help it grow collections. "We believe that Wix still has great pricing strength," he writes and adds that the company's market forecasts seem reasonable and new launches of AI products will help it expand its multiples at which it is traded.
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Cantor Fitzgerald, which is bullish about 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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