NEW YORK (TheStreet) -- Shares of Shire Plc (SHPG) are surging, up 6.29% to $172.67, after Allergan Inc. (AGN), facing an unsolicited bid from Valeant Pharmaceuticals International Inc. (VRTX), is preparing to approach Shire again about a potential takeover after being rebuffed in recent months, sources told Reuters today.
Allergan, the maker of Botox with a market capitalization of nearly $50 billion, is trying to stay independent. It held talks in recent months with Shire about a potential takeover that did not pan out, Reuters reported last week.
TheStreet Ratings team rates SHIRE PLC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SHIRE PLC (SHPG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows: