Oppenheimer’s Earnings Insights: Apple Inc. (AAPL), Alibaba Group Holding Ltd (BABA), Gilead Sciences, Inc. (GILD)

Today, analysts at Oppenheimer highlight their views on the technology giant Apple Inc. (NASDAQ:AAPL),     Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) and pharmaceutical giant Gilead Sciences, Inc. (NASDAQ:GILD), following their earnings announcements.

Apple Inc.

Apple delivered a strong and generally positive earnings report yesterday, despite FX headwinds and macro concerns. Apple shares reacted to the earnings, rising 3.95% to $119.08 on heavy volume.

However, Oppenheimer analyst Andrew Uerkwitz has reduced his FY16 EPS estimate from $10.47 to $10.23 due to more conservative assumptions for iPad and Accessories.

Uerkwitz noted, “Apple’s 99% Y/Y sales growth in China and strong momentum in software/service revenues prove again that the company is competing at a different level from its competitors across product categories. We expect users from other computing platforms to continue to switch over, as iOS offers ever growing ecosystem advantages and superior user experience.”

“Our thesis on Apple is unchanged. This quarter proves again that Apple’s widening platform advantages and superior user experience will maintain its share gain over competition and growth from emerging market customers,” the analyst concluded.

Uerkwitz reiterated an Outperform rating on Apple shares, with a price target of $155, which implies an upside of 31% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 2.3% and a 54% success rate. Uerkwitz has a 0.4% average return when recommending AAPL, and is ranked #1300 out of 3804 analysts.

Out of the 49 analysts polled by TipRanks, 36 rate Apple stock a Buy, 11 rate the stock a Hold and 2 recommend a Sell. With a return potential of 26%, the stock’s consensus target price stands at $148.88.

Alibaba Group Holding Ltd

Oppenheimer analyst Jason Helfstein reiterated an Outperform rating on shares of Alibaba Group, while raising the price target to $90 (from $85), after the company reported strong quarterly earnings yesterday in which the company beat Street estimates for both revenue and EPS.

Helfstein commented: “Upside was driven by Tmall (+56% y/y), which is well positioned to capture the rising demand for high-quality products & services. Ads rev +38% y/y (vs. +29% y/y commission rev) with improving take-rates (+12bps y/y & +9bps q/q) suggests BABA’s enhancing market position, with favorable ROI. Meanwhile, BABA expanded same-day delivery to five more cities (seven total), and entered an additional 4K villages. We are also now more favorable on “Singles Day” based on: (1) productivity of BABA’s investments, (2) feasibility of their globalization initiative, and (3) recent GMV trends. Gross margins beat consensus by 155bps, partially offset by higher selling and marketing expenses. YOKU consolidation timeline/ financial impacts pending.”

According to TipRanks.com, analyst Jason Helfstein has a total average return of 7.0% and a 50% success rate. Helfstein has a 17.5% average return when recommending BABA, and is ranked #433 out of 3804 analysts.

Out of the 34 analysts polled by TipRanks, 32 rate Alibaba Group stock a Buy, while 2 rate the stock a Hold. With a return potential of 18%, the stock’s consensus target price stands at $97.44.

Gilead Sciences, Inc.

GILD reported a healthy third-quarter beat, with revenue and non-GAAP EPS of $8.30 billion and $3.22 topping Street consensus estimates of $7.81 billion and $2.87. However, global HCV franchise sales declined q/q ($4.9 to $4.8B), sending shares down 2.55% Wednesday.

Subsequently, Oppenheimer’s healthcare analyst Wendy Lam reiterated an Outperform rating on Gilead, with a price target of $124, which represents a potential upside of 16% from where the stock is currently trading.

Lam wrote, “We maintain a positive outlook on HCV, especially as Harvoni access continues to improve and the ongoing EU/ROW rollout moves forward. GILD ended the quarter with $25.1B in cash, even after an aggressive $3.1B in share repurchases during 3Q15. Although management remains mum on the topic, we think Gilead is in a prime position to strike another transformational deal in the near term.”

“We’ve updated our estimates to reflect results. We now estimate 2015 and 2016 full-year revenues of $31.95B and $31.40B (prior $31.31B and $31.93B), and non-GAAP EPS of $12.09 and $12.11 (prior $11.54 and $11.91),” the analyst continued.

According to TipRanks.com, analyst Wendy Lam has a total average return of 3.5% and a 75.0% success rate. Lam has a 1.7% average return when recommending GILD, and is ranked #2227 out of 3804 analysts.

Out of the 12 analysts polled by TipRanks in the last 3 months, 10 rate Gilead Sciences stock a Buy, while 2 rate the stock a Hold. With a return potential of 21%, the stock’s consensus target price stands at $130.80.

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts