Liberum is no longer bullish on Shire (LON:SHP), having lowered its rating and price target on the rare disease specialist. The analysts argue that the risk/reward ratio is now more balanced.
Shire’s share price has been steady in London this morning, having inched 0.18 percent higher to 3,927.00p as of 10:38 GMT. The stock, however, is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,533.69 points. The pharmco’s shares have lost more than 13 percent of their value this year, as compared with a near seven-percent rise in the Footsie.
Liberum trims Shire’s rating
Liberum lowered its stance on Shire from ‘buy’ to ‘hold’ today, cutting its price target on the stock from 4,200 to 4,100p. WebFG News quoted the broker as explaining that since upgrading the stock mid-November on valuation grounds, the shares were up 14 percent in dollar terms despite better-than-expected competitor haemophilia data and a small pipeline failure yesterday when the rare disease specialist disclosed that clinical trials for a drug to treat Hunter syndrome in children, SHP609, had failed to meet their primary and secondary endpoints.
“We still believe that, if handled right, the update on the neuroscience strategic review due by year end could be a catalyst for the shares, but with fundamental upside now limited the risk/reward is more balanced,” the broker pointed out, as quoted by the newswire.
Shire updated investors on its third-quarter performance at the end of October, posting a rise in revenues and profits, while revealing that it had suffered generic competition to its ulcerative colitis treatment Lialda.
Other analysts on Shire
Deutsche Bank reiterated its ‘buy’ rating on the blue-chip pharmco earlier this month, without specifying a valuation on the shares. According to MarketBeat, Shire currently has a consensus ‘buy’ rating and an average price target of 5,529.67p.