We Still Believe Gilead Sciences Can Grind Out >10% Share Appreciation, Says Piper Jaffray


Piper Jaffray’s healthcare analyst Joshua Schimmer is weighing in on Gilead Sciences’ (NASDAQ:GILD), after the company reported a solid fourth-quarter performance led by the HCV franchise, but conservatively guided below Street expectations for 2015 revenue.

The analyst reiterated an Overweight rating on the stock, but reduced the price target to $116 (from $120), which represents a potential upside of 17% from where the stock is currently trading.

Schimmer noted, “While new guidance leaves room for upside, the company also noted a number of obvious factors driving uncertainty in the outlook for Sovaldi/Harvoni. Most disappointing to us was the company’s continued refusal to help investors gauge prospects for sustainable earnings growth, instead offering some verbal commitment to fund a R&D pipeline which we view as undervalued but in need of improvement. We reiterate our OW, and our PT falls from $120 to $116. While not a favorite stock, we still believe GILD can grind out >10% share appreciation this year.”

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines for the treatment of life threatening diseases in North America, South America, Europe, and the Asia-Pacific.