Gilead Upgraded To Buy From Hold At Jefferies

Jefferies analyst Michael Yee upgraded Gilead Sciences to Buy and raised his price target for the shares to $95 from $87. The drugmaker closed yesterday down 11c to $81.19. Gilead “has had it tough since 2015,” but he worst is “generally moving behind them,” Yee tells investors in a research note. The analyst sees consensus earnings re-growing in 2020 and beyond and three years of declining.

He wants to own the stock coming out of the decline and back into the recovery period. Gilead’s upcoming 2018 guidance will likely be low for its hepatitis C virus business, and this should not be surprising, Yee contends. At around $80, the analyst thinks the stock’s risk/reward “looks good” with upside to $90-$100 if the business stabilizes and the new pipeline plays out to 2019 and beyond.