Buy Shire (SHPG) on Deal Weakness, BofA/Merrill Lynch Says

BofA/Merrill Lynch analyst Graham Parry is telling clients to buy weakness in Shire (NASDAQ: SHPG) as AbbVie (NASDAQ: ABBV) turns away from the deal. The firm maintained a Buy rating and price target of $230.

While a simple 50% majority can push the deal through, the firm sees this as unlikely given an outright recommendation against the deal by AbbVie's board. That said the stock is fairly valued on a standalone basis, the analyst said.

"We would be buying the share weakness today, following our move to Buy yesterday, given an attractive entry price on fundamentals and a compelling standalone investment case," Parry said.

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 $170.49 yesterday.

You May Also Be Interested In

• BofA Securities Upgrades Etsy (ETSY) to Buy, 'Still Room to Run'
• Freedom Broker Upgrades John B. Sanfilippo & Son, Inc. (JBSS) to Buy
• ICE raises $3.71 billion in senior notes to fund MarketAxess deal