Shire Received its Third Buy in a Row

By Carrie Williams

After Goldman Sachs and BNP Paribas assigned a Buy rating to Shire in the last month, the company received another Buy, this time from Leerink Swann. Analyst Jason Gerberry reiterated a Buy rating on Shire (NASDAQ: SHPG) today and set a price target of $198. The company’s shares opened today at $167.87.

Gerberry noted:

“We expect ACE910 to displace Shire’s FEIBA given significant shortcomings with that product, and we continue to view ‘910 as a safe drug in spite of last week’s Reuters report (below). However, the bar for ACE910 to penetrate the larger non-inhibitor prophy market is “much higher,” and we view risk/reward on SHPG as favorable given ability to preserve at least half this market. Shire will hold an Investor Day on 11/10.”

According to TipRanks.com, Gerberry is ranked 0 out of 5 stars with an average return of -11.2% and a 22.6% success rate. Gerberry covers the Healthcare sector, focusing on stocks such as Flamel Technologies S.A., Sucampo Pharmaceuticals, and Pacira Pharmaceuticals.

Currently, the analyst consensus on Shire is Strong Buy and the average price target is $283.50, representing a 68.9% upside.

In a report issued on November 1, BTIG also maintained a Buy rating on the stock with a $242 price target.

Shire’s market cap is currently $50B and has a P/E ratio of 108.94. The company has a book value ratio of 1.6773.

Shire Plc is a biopharmaceutical company, which focuses on developing and marketing innovative medicines for patients with rare diseases and other conditions. It engaged in the research, development, licensing, manufacturing, marketing, distribution and sale of innovative specialist medicines to meet significant unmet patient needs. The company was founded in 1986 and is headquartered in Dublin, Ireland.