Nomura Securities Starts Gilead Sciences (GILD) at Buy; Top Biotech Stock Pick for 2014

January 8, 2014 7:43 AM EST Send to a Friend
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Price: $108.45 +2.76%

Rating Summary:
    23 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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Nomura Securities initiates coverage on Gilead Sciences (NASDAQ: GILD) with a Buy rating and $118 price target, naming the stock its biotech top stock pick for 2014.

"Set to dominant the Hepatitis C market through the 2011 acquisition of Pharmasset, which transformed the company from a value stock to a growth stock given Sovaldi's (for hepatitis C) ability to more than double Gilead's $10bn revenue base," analyst Ian Somaiya comments. "HIV is Gilead's biggest franchise and we expect it to continue to grow. We believe their oncology pipeline is a free call option, as our estimates for Idelalisib (for chronic lymphocytic leukemia and non-Hodgkin's lymphoma) are below consensus and we and the Street ignore momelotenib altogether; a $2bn+ opportunity. Our $118 target price is based on DCF of projected free cash flows in 2015-20E discounted at 11% with a 5% terminal growth rate."

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 $72.78 yesterday.


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