By Sarah Roden
Gilead Sciences, Inc. (NASDAQ:GILD) will release second quarter earnings on Tuesday, July 28 after the bell. The biopharmaceutical giant is most known for its hepatitis C drugs, Harvoni and Sovaldi. Several analysts weighed in on Gilead after the company posted a strong earnings report in May. Here are the top 5 analysts to follow ahead of the upcoming earnings release:
1. Alan Carr of Needham most recently weighed in on Gilead on May 1, reiterating a Buy rating on the stock with an unchanged priced target of $120. Carr made the rating in light of the company’s first quarter earnings report in which the company posted better-than-expected results. The analyst attributed the strong earnings to Harvoni and to an adjustment made in Branded Prescription Fee. At the time, the analyst correctly predicted that Harvoni would be approved in Japan later in the year. He also commented, “Top-line results from Phase 3 ASTRAL program testing 12-wk sof/ GS-5816 [a pipeline drug aimed at chronic HCV infection] are expected in 3Q15, followed by NDA submission in 4Q15.” The pipeline drug is still in Phase 3 testing.
Alan Carr has rated Gilead 15 times since February 2012, earning a 100% success rate recommending the stock and a +55.4% average return per GILD rating when measured over a one-year horizon and no benchmark.
2. Jim Birchenough of BMO Capital last rated Gilead on May 1, reiterating an Outperform rating with a $159 price target. The analyst weighed in after Gilead’s impressive first quarter performance, noting, “Overall, results were better than expected and establish momentum for the rest of the year and into 2016.” Birchenough was optimistic about “sustainable growth from HCV product sales over the next several years” thanks to “increasing prescriber bandwidth in the U.S., expanding reimbursement in Europe and significant opportunity in Japan.” The analyst was confident that Gilead had significant opportunities to “extend growth” beyond hepatitis C and HIV regimens.
Jim Birchenough has rated Gilead 5 times since November 2011, earning a 100% success rate recommending the stock with a +42.1% average return per GILD rating when measured over a one-year horizon and no benchmark.
3. Phil Nadeau of Cowen & Co. last rated Gilead on May 1 after the company released impressive first quarter earnings. In light of the report, Nadeau reiterated an Outperform rating on Gilead with a $125 price target. The analyst anticipated worries over the long-term “prospects for the HCV franchise,” and noted, “A re-rating likely must await pipeline or business development success.” Until that time comes, Nadeau continues to believe that Gilead is undervalued. The analyst estimates that 342 thousand people will be treated with Gilead’s hepatitis C regimen worldwide in 2015.
Phil Nadeau has rated Gilead 9 times since January 2010, earning an 89% success rate recommending the stock and a +14.2% average return per GILD rating when measured over a one-year horizon and no benchmark.
4. Geoff Meacham of Barclays weighed in on Gilead on May 1 after the biopharmaceutical company released strong earnings. Meacham maintained an Overweight rating on the stock with a $135 price target. At the time, he noted that Gilead’s “discounting may increase” throughout the remainder of the year. However, he noted that the focus will shift to “broader patient access” to expand the market for Gilead’s therapies. Overall, Meacham noted “compelling trends” in Gilead’s hepatitis C regimen and potential new products in the pipeline.
Geoff Meacham has rated Gilead 6 times since September 2012, earning a 100% success rate recommending the stock with a +44.5% average return per GILD rating when measured over a one-year horizon and no benchmark.
5. Brian Skorney of Robert W. Baird last weighed in on Gilead on May 1, reiterating an Outperform rating with a $126 price target. The analyst commented on the strong earnings, “A sizeable beat should be enough to support the stock and perhaps stop the sector slide.” He continued, “We expect controversy over the durability of Hep C to remain but given the magnitude of the cash flow… we’re willing stay long on the expectation that any decline won’t be as significant as the valuation implies and management could do almost anything on the development or M&A front to drive shares higher.”
Brian Skorney has rated Gilead 11 times since August 2012, earning a 100% success rate recommending the stock and a +31.5% average return per GILD rating when measured over a one-year horizon and no benchmark.
According to analysts polled by TipRanks in the last 3 months, 12 are bullish on Gilead and 1 is bearish. The 12-month average price target is $125.58, marking a potential 7% upside from where shares are currently trading.