Gilead Sciences (GILD) PT Trimmed to $123 at Leerink Partners

Leerink Partners analyst Geoffrey Porges trimmed his price target on Gilead Sciences (NASDAQ: GILD) to $123.00 (from $127.00) following disappointing Q1 results but maintained an Outperform rating.

Porges commented, "The weakness came in the HCV products, where revenue slid in the US market in the face of eroding price, shortening duration of treatment, and flat to down patient volume. Outside the US, revenue held up better compared to consensus and our expectations, with increased sales in Japan offsetting declining sales in Europe. Despite the 2% revenue miss, EPS came in more or less in line with consensus but below our estimate. Gilead’s reported operating margin of 69% was just under consensus and our expectations of 70-71% and contributed to the $0.03 EPS miss vs. consensus. Based on this quarter’s results, we are adjusting our expected HCV product sales for Gilead, and also trimming our HIV forecast modestly. It is worth remembering that every 18 months or so, Gilead lays an egg, so to speak, in quarterly results and typically rallies strongly on more favorable results in the following periods."

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 $97.00 yesterday.

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