Buy Shire PLC (ADR)(NASDAQ:SHPG) on Weakness: CRT Capital

Shire PLC (ADR)(NASDAQ:SHPG) was upgraded by CRT Capital this morning to a "Buy" with a price target of $225. The $225 is based on a 21 times multiple on their 2015 earnings per share forecast of $10.65. In the note, which was issued to investors this morning, CRT noted that the company fundamentals remain strong and investors should consider buying the stock on the current weakness."We believe investors should consider purchase of SHPG shares on the weakness, given our view that the fundamentals at the Company remain strong, with the revenues expected to reach $6 billion in 2015, with EPS forecasted at $10.65. While it remains to be seen if Abbvie and Shire can come to an agreement on a proposed merger, given the recent Treasury actions limiting “inversions”, we believe Shire’s management team, led by CEO Flemming Ornskov, will continue to optimize the Co.’s existing product base, while also lowering operating expenses. In sum, we believe Shire remains of the best positioned specialty pharma Co’s left in the space – we think this morning’s major drop in the stock price creates a potential buying opportunity."Shire PLC (ADR)(NASDAQ:SHPG) is down 21.49% this morning to $192 in early morning trade.

About ShireShire PLC (ADR)(SHPG), a biopharmaceutical company, together with its subsidiaries, researches, develops, licenses, manufactures, markets, distributes, and sells pharmaceutical products. It offers various products for the treatment of attention deficit hyperactivity disorder (ADHD), including VYVANSE/VENVANSE, a pro-drug stimulant; ELVANSE/TYVENSE; INTUNIV, an alpha-2A receptor agonist; EQUASYM, a methylphenidate hydrochloride; and ADDERALL XR, an extended release treatment for ADHD. The company also provides PENTASA and LIALDA/MEZAVANT for ulcerative colitis treatment; and RESOLOR, a 5-HT4 receptor agonist for oral symptomatic treatment of chronic constipation in women. In addition, it offers FOSRENOL, a phosphate binder for use in end-stage renal disease receiving dialysis; and XAGRID for the reduction of elevated platelet counts in at-risk essential thrombocythemia patients, as well as for the treatment of thrombocythemia.