Shire share price rises as Liberum turns bullish on pharmco

Analysts point to value of haemophilia franchise

Shire share price rises as Liberum turns bullish on pharmco

Shares in Shire (LON:SHP) closed more than one percent higher in London yesterday, as Liberum turned bullish on the rare disease specialist. The comments follow the FTSE 100 drugmaker’s third-quarter results last month.

Shire’s share price added 1.71 percent to close at 3,559.00p yesterday, outperforming the broader UK market, with the benchmark FTSE 100 index closing marginally lower. The group’s shares have lost more than 28 percent of their value over the past year, and are down by some 24 percent in the year-to-date.

Liberum lifts stance on Shire

Liberum lifted its rating on Shire from ‘hold’ to ‘buy’ yesterday, with a price target of 4,200p on the shares, pointing to prospects for the pharmco’s haemophilia drug trials, with haemophilia worth £8 a share.

“Shire is down 21 percent since we downgraded the name on 1 June,” the broker’s analyst Roger Franklin commented, as quoted by Citywire. “We have resisted upgrading it twice since then as we were insufficiently excited by the valuation for a stock with limited near-term pipeline catalysts and the double overhangs of haemophilia and M&A.”

“However, with the stock now below £35.00, we believe almost the entire value of haemophilia has been discounted from the shares,” he pointed out.

Other analysts on Shire

Shore Capital is also bullish on the rare disease specialist, having reiterated its ‘buy’ rating on the shares this week, without specifying a price target on the stock. According to MarketBeat, the blue-chip pharmco currently has a consensus ‘buy’ rating and an average price target of 5,470p.

Shire updated investors on its third-quarter performance last month, posting a rise in revenue and profits. The company, however, also revealed that it had suffered generic competition to its ulcerative colitis treatment Lialda.

As of 07:49 GMT, Wednesday, 15 November, Shire PLC share price is 3,565.62p.

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