Analysts are weighing in on tech giant Apple Inc. (NASDAQ:AAPL) and pharmaceutical giant Gilead Sciences, Inc. (NASDAQ:GILD), with positive ratings. While brokerage firm Drexel Hamilton noted that its checks suggested Apple’s supply chain “handily beats seasonality in January”, Maxim healthcare analyst provided comments on recent label expansion for Gilead’s Harvoni.
Drexel Hamilton analyst Brian White reiterated a Buy rating on shares of Apple, with a price target of $200, as the ‘Apple Monitor’, as White terms the basket of Apple suppliers, have reported January sales and the performance was much better than typical seasonality with the strongest print since January 2008.
White noted, “January sales for our Apple Monitor came in flat MoM and much better than the average decline of 11% over the past ten years. After the weakest December on record for our Apple Monitor, this was the best January since 2008. Given the significant underperformance for our Apple Monitor in November and December, we are pleased to see this strong outperformance in January.”
“With a recent earnings reset, a new iPhone cycle on the horizon with the iPhone 7, the ramp of Apple Watch, the potential for increased levels of cash paid out to shareholders and new geographic opportunities (e.g., India), we believe Apple represents one of the best values in the tech world,” the analyst opined.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian White has a yearly average return of 4.3% and a 47% success rate. White has a 19.6% average return when recommending AAPL, and is ranked #372 out of 3579 analysts.
Out of the 53 analysts polled by TipRanks, 40 rate Apple stock a Buy, 10 rate the stock a Hold and 3 recommend a Sell. With a return potential of 42.5%, the stock’s consensus target price stands at $137.76.
Gilead Sciences, Inc.
Maxim analyst Jason Kolbert reiterated a Buy rating on shares of Gilead Sciences, with a price target of $115, after the company announced that the FDA has approved the sNDA for Harvoni use in patients with chronic hep C that have advanced liver disease.
Kolbert commented, “Gilead continues to expand the Harvoni label and layer in more patient populations. We believe Harvoni’s high cure rates and safety profile have paved the way to use in patients with damaged livers. Management’s continuous effort to optimize Harvoni’s life cycle supports the effort to dominant the market share and continued growth. The HepC franchise is the cash generating engine ($19B last year) of the company. With a cash balance of $26B (YE-2015), Gilead is well positioned to advanced pipeline programs as well as identify potential strategic acquisitions.”
According to TipRanks.com, analyst Jason Kolbert has a yearly average return of -22.5% and a 23% success rate. Kolbert has a 9% average return when recommending GILD, and is ranked #3576 out of 3579 analysts. Overall, the majority of analysts say Gilead is a “strong buy.” The average forecast is for the stock to hit $118 in the coming months