We Expect Gilead To Remain Volatile, Says Morgan Stanley

In a research report entitled, “Why HCV Sales Could Miss Consensus”, Morgan Stanley analyst Matthew Harrison today reiterated an Equal-weight rating on shares of Gilead Sciences (NASDAQ:GILD), while no price target was provided. 

Harrison noted, “Our IMS analysis suggests 4Q14 HCV sales could miss due to delayed starts from holidays and deductibles. Longer-term, NRx trends in 1Q15 will be more instructive of the peak.”

The analyst added, “The stock has been under pressure recently (MTD -7% vs 0% for NBI) as investor concerns for 4Q have risen post AASLD. Key to the long thesis has been earnings leverage driving the stock even with no multiple expansion. A 4Q miss would cast some doubt on the earnings leverage thesis. Thus, in the near-term we expect GILD to remain volatile given AbbVie headwinds, the potential for PBM noise on AbbVie pricing and 4Q concerns. We believe investors will reassess their stance as 1Q15 NRx patterns develop.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matthew Harrison has a total average return of 23.8% and a 78.6% success rate. Harrison is ranked #521 out of 3405 analysts.



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