UPDATE - Citi Downgrades Gilead Sciences (GILD) to Hold; HIV Trends Decelerating in U.S. - No Near-Term Catalysts
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Price: $56.30 +2.44%
Rating Summary:
17 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
17 Buy, 6 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade GILD Now!
UPDATE - Citi downgrades Gilead Sciences Inc (Nasdaq: GILD) from Buy to Hold. PT lowered from $54 to $38.
Citi analyst says, "We are downgrading to Hold and raising risk rating to High. We admit that this call is late as the long-term patent cliff is well known. We also stick to our guns that impact on 2011 is less than feared, but were surprised by lowering the 2010 guidance. The main reason for the change is that U.S. HIV trends are decelerating likely due to pressure at ADAPs, soft pricing environment and maturing product cycles. More so, setback to HCV pipeline takes away a key catalyst. The stock is cheap, but this is not gaining traction as so are many other stocks that have superior cash flow generation and provide dividends."
"We are reducing our overall HIV revenues by -$120M in ’10, -$356M in ’11, -$670M in ’12 and -$834M in ’13 to reflect stronger than expected impact of EU price cuts & slowing HIV trends. Our new non-GAAP EPS ests are $3.64 in ’10 (from $3.63), $4.04 in ’11 (from $4.13), $4.70 in ’12 (from $4.85) and $5.37 in ’13 (from $5.65)."
To see all the upgrades/downgrades on shares of GILD, visit our Analyst Ratings page.
Gilead Sciences, Inc. (Gilead) is a biopharmaceutical company that discovers, develops and commercializes therapeutics.
Citi analyst says, "We are downgrading to Hold and raising risk rating to High. We admit that this call is late as the long-term patent cliff is well known. We also stick to our guns that impact on 2011 is less than feared, but were surprised by lowering the 2010 guidance. The main reason for the change is that U.S. HIV trends are decelerating likely due to pressure at ADAPs, soft pricing environment and maturing product cycles. More so, setback to HCV pipeline takes away a key catalyst. The stock is cheap, but this is not gaining traction as so are many other stocks that have superior cash flow generation and provide dividends."
"We are reducing our overall HIV revenues by -$120M in ’10, -$356M in ’11, -$670M in ’12 and -$834M in ’13 to reflect stronger than expected impact of EU price cuts & slowing HIV trends. Our new non-GAAP EPS ests are $3.64 in ’10 (from $3.63), $4.04 in ’11 (from $4.13), $4.70 in ’12 (from $4.85) and $5.37 in ’13 (from $5.65)."
To see all the upgrades/downgrades on shares of GILD, visit our Analyst Ratings page.
Gilead Sciences, Inc. (Gilead) is a biopharmaceutical company that discovers, develops and commercializes therapeutics.
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