Teva Pharmaceutical (TEVA) is entering a strong growth phase despite near-term concerns around Austedo and gRevlimid, Oppenheimer said in a note Wednesday.

The analysts said the company is entering the acceleration stage of its transformation, backed by around $3.7 billion in expected 2026 sales from Austedo, Ajovy, and Uzedy. Improving margins and a multi-year cycle of new product launches could further support growth, according to the note.

The analysts said Teva's pipeline is also strengthening, with positive TEV-'408 celiac data, priority review for Ecopipam, and the potential for Duvakitug to address multiple indications.

Investors may be too focused on the expected 2027 Medicare price reset for Austedo and continued gRevlimid erosion, while giving less value to Teva's commercial execution, emerging neuroscience business, and immunology pipeline, the analysts said.

"As these opportunities convert into revenue, we see meaningful earnings upside potential and further valuation expansion," the analysts added.

Oppenheimer initiated coverage of Teva with an outperform rating and $50 price target.

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