Sign up
Pharma Capital

Shire shares in demand after Liberum turns positive on FTSE 100 druggie

The ‘buy’ call was made on valuation grounds with the stock having fallen 21% since the start of June
1510659005_shire.jpg
Shire investors had a skip in their step

Shares in the FTSE 100 druggie Shire PLC (LON:SHP) were in demand late morning following an upgrade by the City broker Liberum.

The ‘buy’ call was made on valuation grounds with the stock having fallen 21% since the start of June.

READ: Shire shares nudge higher at midday after third quarter results beat

Liberum says the risk of a new Shire competitor in the haemophilia market has now been baked into the company’s valuation as has the prospect of management making further big and potentially tricky acquisitions.

Risks now discounted

“With the stock now below £35, we believe almost the entire value of hemophilia has been discounted from the shares,” Liberum said in a note to clients.

“Furthermore, there are welcome signs that management could re-orient from away from M&A to cash returns as it looks at strategic options for neuroscience.”

It has moved its recommendation to ‘buy’ from ‘hold’, while its price target is £42 a share.

In the afternoon session, stock in Shire had nudged up to 3,573p, a rise of 74p (and mainly the result of the Liberum note).

Of the 17 analysts logged as following Shire by the Broker Forecasts site, 15 hold ‘buy’ recommendations. The remainder see the equity as fully valued. The consensus price target is £49.37.

Ian_55ae0ddd437b7.jpg


Register here to be notified of future SHP Company articles
View full SHP profile

Shire Plc Timeline

View All

Related Articles

Antibiotics
US Food & Drug administration approval is yet to be granted but iclaprim, which has fast-track status, is closing in on the promised land.

© biotech Capital 2017

Biotech Capital, a subsidiary of Proactive Investors, acts as the vanguard for listed biotech companies to interact with institutional and highly capitalised investors.
Headquartered in London, Biotech Capital is led by a team of Europe's leading analysts and journalists, publishing daily content, covering all key movements in the Biotechnology market.