For Sirtex Medical Limited (ASX: SRX) shareholders, it's been a tumultuous few months.
One look at the yearly chart above tells you it's been a rocky ride for investors.
But while sharp rises and falls in share price are a regular feature in the biotechnology industry, the same cannot be said when the company is a profitable $1.6 billion leader in its own right.
The most recent share price fall, which took place last week, appears to have been a kneejerk reaction to slower-than-expected growth.
Yet, as my colleague Mike King showed yesterday, the company — although volatile — is still expecting to report sales growth of some 16%.
If this broker is right, Sirtex Medical Limited shares are a BARGAIN
According to Dow Jones Newswires, several major brokers updated their price targets on Sirtex Medical shares over the past week. Macquarie analysts cut their estimate of Sirtex's fair value from $40 to $38, UBS has its target above $40, and Morgan Stanley set its target at $36.74.
If these brokers are right about Sirtex's value, at its current price of $28.69, it could be in bargain territory.
Foolish takeaway
Of course, you should always take analysts' price targets with a pinch of salt because using their estimates are no substitute for doing your own research. However, given the difference between consensus estimates and Sirtex Medical's current share price, it may certainly be worthy of further consideration!
