Teva Pharmaceutical (TEVA) is still under-owned among long-term investors, but the stock has performed stronger and is positioned to do even better in 2025, UBS said in a note emailed Wednesday.

"We see Teva and parts of our [Specialty Pharmaceuticals] as relatively insulated from 2025 macro concerns around regulatory landscape shift/ macro policy concerns," UBS analysts led by Ashwani Verma wrote in the note.

UBS analysts highlighted that the company's recent strong phase 2 data from duvakitug study to treat inflammatory bowel disease, which exceeded investor expectations, strengthens its outlook.

Additionally, UBS analysts believe Teva's potential sale of active pharmaceutical ingredients business, expected to be announced in coming months, could "surprise to the upside."

UBS raised its price target on Teva to $28 from $26, and maintained its buy rating.

Teva shares were up more than 4% in recent trading.

Price: 21.80, Change: +0.92, Percent Change: +4.41