Analysts Are Optimistic About Shire

Jillian Dabney - Author

Apr. 11 2016, Updated 9:07 a.m. ET

Shire’s share price estimates

Shire (SHPG), based in Dublin, Ireland, is a specialty biopharmaceutical company. Historically, it has grown through acquisitions.

The above table shows 12 brokerage firms and their estimated target prices for Shire. The consensus 12-month target price for Shire is $233.40. This translates to a ~33.5% return compared to Shire’s closing price of $174.81 on April 4, 2016.

According to an April 4, 2016, Bloomberg consensus of 15 brokerage firms, 86.7% rated Shire a “buy,” and 13.3% rated it a “hold.” None of them issued a “sell” rating for the stock.

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Analyst recommendations for peers

According to a Bloomberg survey of 22 analysts on April 4, 2016, 63.6% of analysts issued a “buy” rating for Alexion Pharmaceuticals (ALXN), and 36.4% rated the stock a “hold.” None of the analysts issued a “sell” rating.

According to the ratings of 20 analysts in a Bloomberg consensus dated April 4, 2016, 90% believed BioMarin Pharmaceutical (BMRN) is a “buy,” whereas 10% suggested a “hold.” None of the analysts recommended a “sell” for the stock.

A Bloomberg consensus of 28 analysts on April 4, 2016, indicated that 57.1% issued a “buy” rating for Regeneron Pharmaceuticals (REGN), and 39.3% recommended a “hold.” About 3.6% of the analysts gave the stock a “sell” rating.

Analyst recommendations give better insight into these companies, as they are expert expectations. Any direct investment in stocks is risky. To mitigate this risk, you can choose to invest in funds such as the iShares Nasdaq Biotechnology ETF (IBB). IBB has 1.7% of its total holdings in Shire stock.

In the next part, we’ll look at some of Shire’s valuation drivers, including drugs.


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