Gilead Sciences (GILD): Why Splitting GILD Is A Bad Idea - Piper Jaffray

August 19, 2016 8:52 AM EDT
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Price: $74.44 +1.50%

Rating Summary:
    23 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 19 | New: 11
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Piper Jaffray analyst, Joshua Schimmer, reiterated his Overweight rating on shares of Gilead Sciences (NASDAQ: GILD) along with his price target of $108 while shedding light on the myth that breaking up GILD is a good idea.

The analyst believes that breaking up GILD into its HIV and HCV franchises could reduce the hyper-focus on HCV which is distracting the company from a materially undervalued and robust HIV business (that includes bictegravir/Descovy). The analyst thinks splitting up the company is a poor idea and the probability of this occurring is negligible.

Separating HIV and HCV will require replication of sales forces, commercial infrastructure, administrative efforts and virology R&D. It would also have to address tax considerations and ex-US cash.

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $80.59 yesterday.

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