Piper Jaffray Joshua Schimmer is out with a research report on Gilead Sciences, Inc. (NASDAQ:GILD) after hosting an investor dinner with the biotech giant’s CEO, CFO, and IR team earlier this week. To the analyst, this “proved to be a highly constructive dialogue focused on the company’s strengths, strategy and needs,” which only further serves to maintain the firm as a stock favorite. To put it simply, Schimmer proclaims with regards to GILD, “Yep, still our top large cap pick.”
On back of the management dinner, the analyst reiterates an Overweight rating on shares of GILD with a $102 price target, which represents a 40% increase from current levels.
The dinner certainly fostered Schimmer’s heightened confidence in the firm’s prospects. The analyst commends GILD, explaining, “We came away reassured that the HIV and HCV business are in good hands, and that the company is taking measured steps to diversify into other therapeutic categories. While we might differ in our views with regard to the appropriate diversification strategy and pipeline programs, we take comfort that the company is carefully assessing M&A opportunities, and we appreciate the challenges presented by heterogeneous investor viewpoints.
Looking ahead, “We believe the company will return to top/bottom line growth soon driven by the HIV franchise which should drive a meaningful inflection in P/E multiple, which has been the core of our investment thesis for the past few months,” Schimmer concludes.
As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Joshua Schimmer is ranked #4,110 out of 4,239 analysts. Schimmer has a 37% success rate and faces a loss of 7.1% in his annual returns. When recommending GILD, Schimmer loses 5.1% in average profits on the stock.
TipRanks analytics exhibit GILD as a Buy. Out of 17 analysts polled by TipRanks in the last 3 months, 12 are bullish on Gilead stock and 4 remain sidelined. With a return potential of 35%, the stock’s consensus target price stands at $98.43.