What happened

The stock of Teva Pharmaceutical Industries (TEVA 2.06%) closed out the trading week in style, popping by almost 6% on Friday. The generic-drug specialist was the subject of a recommendation upgrade from a noted financial institution, hence the share price rise.

So what

The institution in question is Bank of America. Analyst Jason Gerberry from the bank's securities unit raised his recommendation on Teva from neutral to buy. Along the way, he also increased his price target on the stock, to $13 per share from the previous $10. This new level implies nearly 22% upside from the latest closing price.

Gerberry's move is part of a broader reorganization of healthcare sector ratings. It also comes from last month's announcement that Teva had reached a tentative $4.25 billion settlement with a host of parties over its alleged role in the U.S. opioid crisis. 

In his latest research note, referring to earnings before interest, taxes, depreciation, and amortization (EBITDA), the analyst wrote that "we believe Teva is making material progress toward cleaning up its legal litigation overhangs which along with a solid 2023-24 new product cycle should be enough to shift the company back toward EBITDA growth."

Now what

Gerberry's points are well taken, and operating in an environment where the population is aging and will require more medical care (plus the inexpensive generic drugs Teva specializes in), the company is poised to do well. Investors were clearly buying this argument on Friday; the bulls are clearly returning to Teva stock.