Shire PLC Downgraded to “Neutral” at Zacks (SHPG)
Shire PLC (NASDAQ:SHPG) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a report issued on Friday. They currently have a $249.00 price target on the stock. Zacks‘s target price would suggest a potential upside of 4.91% from the company’s current price.
Zacks’ analyst wrote, “Shire reported first quarter 2014 earnings of $2.36 per ADS, beating the Zacks Consensus Estimate of $2.22. Quarterly revenues increased 18% to $1.3 billion, in line with the Zacks Consensus Estimate. The acquisition of ViroPharma is expected to boost the bottom line by 7% in 2014. AbbVie recently proposed to acquire Shire for 20.44 in cash and 0.7988 AbbVie shares per Shire share. The proposal was initially made on May 30, 2014. However, Shire reiterated that its board has already considered the proposal in detail and unanimously rejected it as it believes that the proposal fundamentally undervalues Shire and its prospects. With the proposed acquisition, the stock has been holding up steady in the last few days. However, we do not see further upside potential at the current levels and downgrade our recommendation to Neutral. “
Shire PLC (NASDAQ:SHPG) traded up 0.05% during mid-day trading on Friday, hitting $237.35. The stock had a trading volume of 467,616 shares. Shire PLC has a 1-year low of $96.14 and a 1-year high of $237.67. The stock’s 50-day moving average is $192.7 and its 200-day moving average is $163.7. The company has a market cap of $46.228 billion and a price-to-earnings ratio of 54.80.
Shire PLC (NASDAQ:SHPG) last issued its quarterly earnings data on Thursday, May 1st. The company reported $2.36 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.22 by $0.14. The company had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.38 billion. During the same quarter in the previous year, the company posted $0.35 earnings per share. The company’s revenue for the quarter was up 17.8% on a year-over-year basis. Analysts expect that Shire PLC will post $9.79 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on SHPG. Analysts at Jefferies Group reiterated a “buy” rating on shares of Shire PLC in a research note on Thursday, June 26th. They now have a $265.00 price target on the stock, up previously from $205.00. Separately, analysts at CRT Capital reiterated a “buy” rating on shares of Shire PLC in a research note on Monday, June 23rd. They now have a $250.00 price target on the stock, up previously from $195.00. Finally, analysts at FBR Capital Markets raised their price target on shares of Shire PLC from $156.00 to $171.00 in a research note on Tuesday, May 27th. They now have a “market perform” rating on the stock. Five research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $189.62.
Shire plc (NASDAQ:SHPG) is a specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician.
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