Shire PLC (NASDAQ: SHPG) was reiterated as Buy at Merrill Lynch on Tuesday, with the firm’s overseas price target representing about 50% upside. The firm called Shire acutely undervalued, and the sum of the parts analysis even suggests a negative value is implied for hemophilia while a spin-off of its neuroscience unit could create value. It closed at $155.66 on Monday and has a consensus target price of about $226.
Sony Corp. (NYSE: SNE) was downgraded to Neutral from Outperform at Credit Suisse, noting that current earnings look solid but with a focus shifting to an earnings plateau in 2019.
Supernus Pharmaceuticals Inc. (NASDAQ: SUPN) saw its shares decline more than 5% after a drug study change recommendation on a treatment for childhood aggression. Supernus was downgraded to Hold from Buy at Stifel, but Jefferies maintained its Buy rating.
Time Warner Inc. (NYSE: TWX) was downgraded to Neutral from Outperform at Credit Suisse, but that is ahead of its AT&T merger and close to its buyout price.
Total System Services Inc. (NYSE: TSS) was downgraded to Hold from Buy at Stifel.
TreeHouse Foods Inc. (NYSE: THS) was reinstated as Neutral at Merrill Lynch, and the $68 price objective compares to a $67.29 closing price from the prior day.
Vornado Realty Trust (NYSE: VNO) shares had pulled back slightly into and during the Toys “R” Us bankruptcy as it has owned a 33% stake from a 2005 leveraged buyout with Bain and KKR. Merrill Lynch noted that the Chapter 11 filing was expected and that Vornado already has written down its investment to zero, and the firm assigned no value for this in the Vornado earnings model or net asset value.
RBC Capital Markets started the pharmacy and distribution companies. Some companies were started as Sector Perform, but the companies given new Outperform ratings included Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX), CVS Health Corp. (NYSE: CVS) and Walgreen Boots Alliance Inc. (NASDAQ: WBA), while Cerner Corp. (CERN) was named as Outperform and assigned the Top Pick ranking.
Monday’s top analyst calls included ASML, General Electric, HubSpot, Infosys, Teva Pharmaceutical, United Continental and many more.