Maxim Group Maintains Buy On Gilead Sciences; Sees 15% Upside For The Stock
In a research report published today, Maxim Group analyst Jason Kolbert maintained a Buy rating on Gilead Sciences (NASDAQ:GILD) with a price target of $127.00, which represents a potential upside of 15% from where the stock is currently trading.
Kolbert noted, “Gilead reported a quarter slightly below Street and our forecasts, which admittedly had become aggressive. Gilead outlined that included in the GAAP and non-GAAP earnings per share amounts are a “cumulative catch-up of $337 million ($0.21 per diluted share)”, which related to the non-tax deductible branded prescription drug (BPD) fee for the final regulations in the Affordable Care Act issued during the quarter, which also resulted in increased guidance to the SG&A line.”
The analyst concluded, “Gilead continues to deliver a very solid quarter, as the focus shifts now from Sovaldi to Sovaldi/Harvoni, and an understanding regarding how patient dynamics, costs, and reimbursements may shift around for the company, patients, and payers. Our message remains unchanged: We would use any weakness over the quarter to build positions.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 7.0% and a 45.6% success rate. Kolbert has a 37.0% average return when recommending GILD, and is ranked #479 out of 3350 analysts.