Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

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

View full SHP profile View Profile

Shire Plc Timeline

Related Articles

Patient undergoing radiotherapy
August 02 2017
Nanoparticles with mega potential - that’s how the biotech team at American investment bank described the company's technology
picture of human skeleton
July 21 2017
Tissue Regenix is funding the acquisition with a placing at 10p to raise £40mln
Cancer cells
September 05 2017
In an initiation note on the company, finnCap’s analysts noted that ANGLE is focused on the development of Parsortix, an instrument platform with recurring revenues designed to isolate and harvest rare circulating tumour cells from a patient’s blood sample

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use