In a research note sent to investors Friday, Maxim analyst Jason Kolbert reiterated a Hold rating on shares of Gilead Sciences, Inc. (NASDAQ:GILD), after the company announced that the European Commission approved its new pangenotypic HCV product Epclusa for the treatment of patients with genotype 1-6 chronic Hepatitis C Virus (HCV) infection. Shares of Gilead are currently trading at $86.53, up $1.06 or 1.25%.
Kolbert noted, “With the US and EU approval of Epclusa, we continue to see Gilead maintaining its dominant position in the HCV space. We expect to see Epclusa start cannibalizing revenues from Harvoni and Solvaldi, and bringing incremental gains to Gilead’s HCV franchise.”
“Fundamentally, the company drove free cash flow of more than $4B in 1Q, allowing it to be opportunistic (M&A to acquire growth), pay dividends, and make share repurchases. We still believe in Gilead and its long-term potential; however, in the short term, we see a period of consolidation in the stock,” the analyst added.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a yearly average return of -15.5% and a 30.5% success rate. Kolbert has a 4.5% average return when recommending GILD, and is ranked #3932 out of 4018 analysts.
Out of the 22 analysts polled by TipRanks, 15 rate Gilead Sciences stock a Buy, while 7 rate the stock a Hold. With a return potential of 31%, the stock’s consensus target price stands at $113.25.