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Recommendations for Shire as of October 30

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Analysts’ ratings

Shire (SHPG) stock has risen ~23% over the last 12 months and ~12.8% year-to-date. Analysts’ estimates show that the stock has a potential to return ~15.8% over the next 12 months. Analysts’ recommendations show a 12-month target price of $202.45 compared to the last price of $174.90 on October 27. 

The above chart shows analysts’ recommendations for Shire stock over the last 12 months.

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Analysts’ recommendations

There are 11 analysts tracking Shire stock as of October 30. Four of them are recommending a “strong buy,” five are recommending a “buy,” and two are recommending a “hold.” None of them have recommended a “sell.” The changes in analysts’ estimates and recommendations are based on changing trends in the stock and the company’s performance.

The consensus rating for Shire is 1.82, which represents a “buy” for momentum investors and long-term growth investors.

Shire’s valuation

As of October 30, Shire was trading at a forward PE multiple of 11.2x compared to the industry average of 17.5x. It was trading at a forward EV[1. enterprise value]-to-EBITDA multiple of 10.5x compared to the industry average of 13.3x. Its forward EV-to-revenue multiple was 4.5x compared to the industry average of 4.6x.

The VanEck Vectors Biotech ETF (BBH) holds 5.4% of its total investments in Shire (SHPG), 4.9% in Biogen (BIIB), 5.2% in Allergan (AGN), and 8.4% in Amgen (AMGN).

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