John Paulson 4Q Picks: Shire PLC (ADR) (SHPG), Valeant Pharmaceuticals Intl Inc (VRX), Teva Pharmaceutical Industries Ltd (ADR) (VRX)

By Sarah Roden

New York based hedge fund, Paulson & Co revised its portfolio after a harsh year with a 24.09% loss. The hedge fund, which currently has a portfolio value of $16.73B, made a few notable additions since the beginning of the year (among other reductions and additions) and we’ll review why they were chosen. These stocks are Shire (NASDAQ:SHPG), Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA).

Shire PLC (ADR)

Paulson’s holdings of the foreign biotech and medicine company, Shire, increased by 0.58% in the fourth quarter. Despite a year long gradual decline in value, several analysts began to place their bets on a increase in stock value.

According to TipRanks, in the past three months, six analysts gave the stock a Buy rating and one remained on the sidelines. Their 12-month price targets average at $237.57, marking a 36.69% upside from where shares last closed.

SHPG Stats


Valeant Pharmaceuticals Intl Inc

A few events marked the company’s year long 90% decline in value. The most recent of those events is the company’s recent 10-k filing. One Piper Jaffery analyst, Alex Arfaei, which according to TipRanks, has a 66% success rate, remains pessimistic after reading through the filing and reiterates a Hold rating, lowering his price target to $44.00. Paulson increased its holdings of the company by 49.22% in the fourth quarter.

According to TipRanks, in the past three months, seven analysts gave VRX a Buy rating, four analysts gave the stock a Sell rating and ten analysts (including Arfaei) remain on the sidelines. Overall, all price targets average at $47.43, marking a 58.68% upside from current levels.

VRX Consensus

Teva Pharmaceutical Industries Ltd (ADR)

This global generic pharmaceutical company’s value declined over the last year, as well. However, many analysts are projecting a strong recovery, as seen in the past three months on TipRanks. Teva’s sales are expected to decline for the coming earnings report, yet analysts see profit margin expansion. In addition, Teva exceeded Wall Street estimates many time in the past, thus many analysts have some faith in the company.

According to TipRanks, in the past three months, twelve analysts gave the company a Buy rating and three remained on the sidelines. The average 12-month price targets is $73.61, marking a 46.43% upside from where shares last closed.

TEVA Consensus