Needham & Company Downgrades Gilead Sciences (GILD) to Hold

Needham & Company downgraded Gilead Sciences (NASDAQ: GILD) from Buy to Hold.

Analyst Alan Carr commented, "Gilead reported 2Q16 financial results yesterday. Product sales of $7.65B were consistent w/ our $7.71B and consensus $7.77B expectations. WW Harvoni and Sovaldi sales were $2.56B and $1.36B respectively, compared to consensus $2.87B and $1.19B. Mgmt lowered 2016 revenue guidance by $500M to $29.5B-30.5B, citing challenges in HCV, including fewer pt starts and shorter tx duration, contributing to decline in revenue/ pt. We expect this trend to continue.

Although we expect Gilead to retain generally dominant share in HCV and regain momentum w/ launch of TAF/FTC/BIC in HIV, overall revenue growth is a concern. We are downgrading to HOLD (was BUY). Favorable view may be restored w/ more evidence of substantial growth potential derived from M&A or internal pipeline. Areas of opportunity include HBV, liver disease, and oncology."

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 $88.55 yesterday.

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