Deutsche Bank Resumes Shire (SHPG) at Buy

Deutsche Bank resumed coverage on Shire (NASDAQ: SHPG) with a Buy rating and a price target of $220.00. Comments follow news talks with Abbvie have ended.

Analyst Mark Clark said, "Following a period of restriction, we are resuming research coverage of Shire with a BUY rating and a new target price (TP) of $220 per ADS. Despite the distractions of the merger process with AbbVie, the company continues to perform well: better-than-expected 2Q results led to a FY guidance upgrade (to low/mid 30% EPS growth) and last night's press release confirmed that trading has "remained strong" since the end of 2Q. Furthermore we note that Shire will this year receive an additional $2bn cash ‘windfall’ from a combination of the AbbVie break fee and a Canadian tax settlement. Against this, we now assume a 12-18 month delay to US launch of adult ADHD drug SHP465 (to 2H16), reflecting additional FDA clinical requirements. Our fine-tuned EPS estimates are shown below, although we highlight that these are likely to be adjusted further following the publication of 3Q results on Friday 24 October."

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 $184.59 yesterday.

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