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M&A has been the talk of the Healthcare sector over the past three years and saw shares in Shire buoyed by chatter about a potential acquisition by US peer AbbVie. That deal fell through, and now shares are right back where they were before the excitement kicked off – back in 2014. Does this make the stock a reasonably priced M&A target again?
Do you think shares in Shire will fall back towards the lows of 1750p or rally up to the highs of 6000p?
We note the technical indicators are still trending down, a boon for bearish investors looking to short the stock. But while they do indeed still indicate a bearish market, it’s possible the July 2015 downtrend may have run its course. Two bounces off support around £35 will no doubt be welcomed by the bulls – hoping as they are for 3 year rising support to hold firm and provide a platform from which shares could rally. A look at Bloomberg’s broker consensus shows why bulls are watching this stock closely!
There are currently no sell ratings on Shire, and the most bearish target is still looking for 27% upside. Of the 11 brokers to give explicit price targets, all have put them above the current share price.
For a full rundown on Shire, click here.
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