Teva's Stock Keeps Plunging On Heavy Volume After Morgan Stanley Downgrade

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Teva Pharmaceutical Industries Ltd. tumbled 8% in morning trade Monday on heavy volume, putting them on track to close at a 14-year low, as Morgan Stanley turned bearish on the generic drug maker in the aftermath of disappointing results. Volume ballooned to 39.1 million shares, which was more than triple the full-day average, and enough to make it the most actively traded stock on the major U.S. exchanges. The stock was headed for an eighth straight loss to the lowest close since March 13, 2003, highlighted by 39% plunge the past three sessions after the company missed profit expectations and cut its outlook, citing accelerated price erosion and decreased volume in its U.S. generics business. On Monday, Morgan Stanley analyst David Risinger cut his rating to underweight from equal weight, and slashed his stock price target to $16 from $36, saying he had underappreciated the risk of generics pricing pressure to Teva's earnings. The stock has plummeted 48% year to date, while the SPDR S&P Pharmaceuticals ETF has gained 5.9% and the S&P 500 has advanced 11%.

Continue Reading Below

Copyright © 2017 MarketWatch, Inc.