Cowen’s healthcare analyst Phil Nadeau weighed in today with a favorable report on Gilead Sciences, Inc. (NASDAQ:GILD), following the release of Gilead’s first-quarter earnings report, showing HCV revenue of $4.6 billion that was well ahead of consensus of $3.7 billion, and an increase in guidance. Nadeau reiterated an Outperform rating on the stock with a $125 price target, implying an upside of 24% from current levels.

Nadeau noted, “We expect a bounce in GILD today, but we suspect worries over the L-T prospects for the HCV franchise will persist. Although a re-rating likely must await pipeline or business development success, we continue to think GILD is undervalued.”

Furthermore, “We are adjusting our Q2-Q4:15 U.S. HCV sales estimates from $3.6B/Q to $4B/Q (implying a modest Q/Q decline during Q2), and our 2015 HCV estimate has increased from $14.5B to $16.5B. Our estimate assumes that 342K people will be treated with a GILD HCV regimen worldwide during 2015.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Phil Nadeau has a total average return of 24.2% and a 66.7% success rate. Nadeau has a 1.7% average return when recommending GILD, and is ranked #190 out of 3587 analysts.

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