Maxim Maintains Bullish Stance On Gilead Following CVS Deal
Maxim Group analyst Jason Kolbert maintained a Buy rating on Gilead Sciences (NASDAQ:GILD) with a price target of $127, as the company’s hepatitis C drugs, Sovaldi and Harvoni, will get exclusive coverage on several plans from CVS/Caremark, taking the opposite stance from competitor Express Scripts.
Kolbert noted, “The controversy continues in 2015 with CVS and Gilead announcing preferred formulary status to Harvoni and Sovaldi. AbbVie’s Viekira Pak will only be available through medical exception or prior authorization.”
The analyst added, “The key for Gilead will be understanding how both the steady state dynamics of Sovaldi and Harvoni (short duration, interferon- and ribavirin-free), which offer real value to patients and payers, “plays out”. Launches in Europe and Japan too.”
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 4.4% and a 43.4% success rate. Kolbert has a 16.8% average return when recommending GILD, and is ranked #743 out of 3429 analysts.