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Gilead Sciences (GILD) Price Target Raised to $115 at RBC Capital

August 22, 2014 7:09 AM EDT
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Price: $73.26 -0.58%

Rating Summary:
    24 Buy, 16 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 14 | New: 22
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RBC Capital maintained an Outperform rating on Gilead Sciences (NASDAQ: GILD) and raised its price target to $115.00 (from $102.00). Analyst Michael J. Yee is positive on its next-gen HIV pill, with Phase II on tap next month.

"Extended TAF (son-of-Viread) Phase II data coming up at ICAAC in Sept and Phase III data on track to read-out in next month. We predict TAF results to be solid and increase investor comfort in the sustainability of GILD's HIV tail. Thus, we increase our price target to $115/share based on 13.5x (from 12x) on our 2015E EPS," said Yee.

"TAF is a more potent pro-drug of Viread and has similar efficacy but less long-term kidney damage and bone mineral density loss (BMD). Also, it's much smaller size makes it amenable to "co-formulate" with protease inhibitors so Truvada can be combined with Prezista (JNJ) and make what is a 2-pill regimen now into a 1-pill simple regimen. We are confident over the long run, most developed nations won't be "splitting up pills" and ruining compliance so we model a -20% erosion post 2019, versus consensus which is -25% to -50% erosion expectation after Viread generic launches in 2018," he added.

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 $102.27 yesterday.



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