Shire plc (SHPG): $ Key Programs Not In Consensus - Jefferies

September 6, 2016 8:31 AM EDT
Get Alerts SHPG Hot Sheet
Price: $179.25 -1.13%

Rating Summary:
    19 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 30
Trade SHPG Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial here.

Jefferies analyst, David Steinberg, reiterated his Buy rating on shares of Shire (NASDAQ: SHPG) after hosing 3 days of management meetings which increased his confidence that the company is well positioned to deliver ~15%+ EPS growth. In addition to many new data points on Xiidra, mgt expects that the hemophilia business will grow nicely – even if there is stiff competition in the inhibitor segment.

SHPG has 40+ programs in clinical testing and at least four late-stage programs appear overly discounted. Mgt projects sales of SHP465 of $500M+ by 2020; double that of consensus. This seems reasonable since every ADHD product launched has exceeded expectations. The second Ph3 asset is SHP621 for eosinophilic esophagitis. Given a dearth of therapies and ~180k US sufferers, peak sales could approach $500M yet Street models have no sales. Finally, expectations for IT programs (Hunters CNS, etc.) & SHP607 (Premiplex) have become heavily discounted due to mixed data or prior development setbacks. All four could become very meaningful products in the 2018-20 timeframe

No change to the price target of $262.

For an analyst ratings summary and ratings history on Shire click here. For more ratings news on Shire click here.

Shares of Shire closed at $192.37 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Management Comments

Related Entities

Jefferies & Co

Add Your Comment