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

September 6, 2016 8:31 AM EDT
Get Alerts SHPG Hot Sheet
Price: $174.80 +2.23%

Rating Summary:
    19 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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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.

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