GOOD OUTLOOK FOR ISRAEL'S TEVA

Israel's Teva Pharmaceuticals has been given an outperform rating by analysts David Saks of Gruntal & Co in the USA. The analyst notes that the company has a rapidly expanding US generic business in Lemmon Corp as well as a growing European/global presence. He sees the company as undervalued, and its low profits/earnings ratio of 17 times 1994 earnings is among the lowest in his generic stock universe.

Shares are selling at a discount of 58% to his projected growth rate. Additionally, the recently-announced stock liquidation by the late Robert Maxwell's pension fund of around 8 million American Depositary Receipts takes away some uncertainty of excess stock supply. A secondary offering of Maxwell shares, planned for late July, may have temporarily depressed the stock.

Teva has strong technical skills, a rapidly expanding product base, productive new product flow, and a solid financial position Mr Saks feels will support 40% earnings growth over the next three years, up around 80% from current levels. The recent pull back from an all time high of $25.5 is a good buying opportunity, he said.