After Swallowing Baxalta, Barron’s Sees 25% Upside For Shire

Just months after being spun off from Baxter International(BAX), Baxalta found itself the target of an intense pursuit by Shire Pharmaceuticals(SHPG). Baxalta resisted, but, ultimately agreed to a deal which closed earlier this year. Barron’s sees good things ahead for the combined company. In an article this weekend, the venerable publication points out that merely by achieving a market average multiple, the stock price would increase 25% from current levels.

As a spinoff aside, prior to its successful pursuit of Baxalta, Shire itself fought off a bid from AbbVie(ABBV) one of the largest spinoffs we’ve covered . Aside from multiple expansion, Barron’s points to Shire’s strong revenue growth and deep pipeline with over 50 products in clinical development as catalysts for further gains. The company is also expected to reduce its debt which will both improve its earnings and prepare it for future opportunistic acquisitions.

Disclosure: The author holds no position in any stock mentioned.