Zacks Investment Research upgraded shares of Shire plc (SHPGY) from NEUTRAL to OUTPERFORM on November 22, 2013, with a target price of $166.00.
Shire reported third quarter earnings of $1.77 per ADS, up from $1.36 per ADS in the year-ago quarter. The Zacks Consensus Estimate was $1.64. Quarterly revenues increased 12% to $1.2 billion. Shire is well placed in the ADHD market thanks to key drug Vyvanse, which is now being developed for additional indications as well. We are impressed by strong third quarter results and consecutive increase in earnings guidance. Shire's efforts to realign its business structure to drive growth and innovation are noteworthy. The realignment is expected to drive improved operating leverage in 2014 and 2015. Based on accretion from the recently announced acquisition of ViroPharma, we expect upside from current levels and hence upgrade our recommendation to Outperform.
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