Jefferies Remains Sidelined on Gilead Sciences, Inc. (GILD) Following Analysis of Modest Harvoni Sales

Jefferies analyst Brian Abrahams is out with a research report on shares of Gilead Sciences, Inc. (NASDAQ:GILD), reiterating a Hold rating on GILD, while trimming the price target from $93 to $91, on the back of the analyst’s assessment of pipeline Hepatitis C all-oral drug Harvoni, which could shorten the duration of treatment for patients suffering from chronic Hepatitis C.

Abrahams notes, “Our analysis of updated IMS Rx data suggests Harvoni is tracking modestly light for 3Q; lowering our 3Q, 4Q, and out-year Harvoni sales ests. reduces our price target modestly to $91. HCV declines are more baked in and guidance still looks achievable, though with continued HCV softness it is difficult to know when the stock will start to better mirror investor focus shifting toward more favorable HIV dynamics and potential strategic opportunities.”

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As of Abrahams’ analysis, Harvoni indicated to be tracking about $100 to $200 million below expectations for the quarter, a 23% drop from second-quarter sales. Currently based on the analyst’s evaluation, pointing to “potential low single digit price erosion,” Abrahams finds Harvoni sales are dragging an estimated $1.18 billion under the Street’s projection of $1.39 billion, and Abrahams’ previous estimate of $1.47 billion. On a global level, this translates to $2.3 billion for third-quarter sales, which falls “modestly” beneath the Street’s expectation of $2.4 billion.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Abrahams is ranked #403 out of 4,129 analysts. Abrahams has a 60% success rate and gains 6.5% in his annual returns. When recommending GILD, Abrahams earns 21.5% in average profits on the stock.

TipRanks analytics exhibit GILD as a Buy. Based on 16 analysts polled in the last 3 months, 50% rate a Buy on GILD, while 50% maintain a Hold. The consensus price target stands at $106.63, marking a 36% upside from where the stock is currently trading.


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