Wall Street analysts’ estimates
Wall Street analysts expect Shire (SHPG) to report a 2.7% rise in revenue to ~$15.56 billion in 2018 compared to ~$15.16 billion in 2017. Its adjusted EPS are expected to be $15.22 in 2018 compared to $15.15 in 2017.
Analysts expect Shire’s net adjusted income to increase to $4.68 billion in 2018 compared to its net adjusted income of $4.60 billion in 2017.
The chart above compares the changes in analysts’ recommendations for Shire since January 2018.
Shire’s stock price has risen nearly 15.4% in the last 12 months, and it’s risen ~15.7% year-to-date in 2018. Analysts expect the stock to rise ~12.4% over the next 12 months. Their recommendations show a consensus 12-month target price of $201.82 compared to the stock’s price of $178.15 on September 18.
As of September 19, 12 analysts are tracking Shire. Of these, four analysts have recommended “strong buys,” six have recommended “buys,” and two have recommended “holds” on the stock. No analysts have recommended “sells” on Shire. The consensus rating for Shire stands at 1.83, which represents a “strong buy” for long-term growth investors and momentum investors. Changes in analysts’ estimates and recommendations tend to be based on the changing trends in stock prices and company performances.
To divest company-specific risks, investors can consider ETFs such as the VanEck Vectors Biotech ETF (BBH), which holds 4.8% of its total investments in Shire, 5.5% in Allergan (AGN), 4.2% in BioMarin (BMRN), and 2.8% in Seattle Genetics (SGEN).