The investment banks published the recommended stocks for 2025, and there are also Israeli ones

Two Israeli stocks were included in the review of the most preferred stocks (Top Picks) for investment in 2025. One is mentioned in the Bank of America list, and the other by the investment bank Cantor Fitzgerald.

In the list of Bank of America, in the biopharma sector, Teva is mentioned as one of the preferred stocks, while the Wix stock is one of the preferred in the Internet sector according to Cantor Fitzgerald.

The medicine that made Teva’s stock jump

The pharmaceutical company nature managed by Richard Francis, is traded in New York and Tel Aviv at a value of $24.6 billion after its stock climbed 111% in 2024. Bank of America raises their target price for Teva shares by one dollar, from $25 to $26, a 20.4% premium on the current price. According to the bank’s economists, “2025 will be a key year in stabilizing the company’s financial profile”, and they mention the plan to sell the raw materials division this year and the good financial results, so in their estimation the debt reduction and the decrease in leverage will accelerate. “In our opinion, Teva’s turnaround story benefits from maximizing its asset portfolio and reducing risk in assets under development such as the drug for schizophrenia and the drug duvakitug for inflammatory bowel disease, which is entering phase 3.”

Bank of America lists a number of factors that can have a positive effect on the stock in the coming year, among others the quarterly results – in their estimation, Teva will be able to continue to show growth at a medium single-digit rate with a certain upside potential; the plan to sell the raw materials division that could accelerate deleveraging; and publishing more information about the drug duvakitug. As a reminder, this drug, which Teva is developing in collaboration with Sanofi, showed strong results in a phase 2 trial last month, and Teva’s stock jumped.

According to Bank of America, Teva’s strong product pipeline leaves room for another increase in target prices in the future and supports a higher multiplier.

Besides Teva, the bank’s favorites in the sector (all are defined as SMID stocks – that is, medium and small) are Biohaven, Jazz and Ionis Pharmaceuticals. In general, they estimate that, as in 2024, 2025 will also be a year with few mergers and acquisitions in the sector.

Wix is ​​mentioned as potentially on the radar as an acquisition target

At the same time as mentioned, Cantor publishes an overview of the stocks of the Internet sector and selectsWix under the management of Avishi Abrahami, as one of their favorites in the sector – alongside big names like Meta , Amazon and DoorDash. The Israeli company is traded on Nasdaq at a value of 12.1 billion dollars after an increase of about 74% in 2025. Internet analyst at Kantor, Deepak Mativanan, recommends it with an “excess yield” recommendation and raises the target price per share from 240 to 260 dollars, A premium of around 18%.Wix has a good product roadmap, which will help it grow in collections, he says. “We believe Wix still has a lot of pricing power,” he writes, adding that market forecasts for the company look reasonable, and new launches of AI products will help expand the multiples at which it trades.

In general, Cantor takes a “bullish” approach to the sector, as they say the economic fundamentals remain strong. They point out that the rate of innovation in several fields (including AI, robotics, quantum computing) is accelerating. Demand in the field is stable, and there is room to expand multipliers. They expect an increase in capital expenditures this year, as well as an easing of regulation. In their estimation, there will be an increase in mergers and acquisitions, with Wix also being mentioned there as someone who may be on the radar as a target for acquisition, alongside other companies such as ETSY and TripAdvisor.