Biotech Correction Nearing Support - Wells Fargo Survey (GILD) (CELG) (VRTX) (PCYC) (ITMN) (FPRX) (ARRY) (IBB)
Get Alerts GILD Hot Sheet
Price: $65.96 +2.14%
Rating Summary:
24 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 23 | New: 10
Rating Summary:
24 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 23 | New: 10
Join SI Premium – FREE
A survey of buyside investors suggested the biotech correction could find support soon, said Wells Fargo. Sentiment showed more downside may be likely but the sell off probably doesn't have much more steam.
"To gauge where sentiment lies following the recent biotech correction, we conducted a survey of investors. Based on the results, we believe that while we could see additional volatility in the coming days to weeks, there would likely be strong support for the sector at levels modestly lower than where stocks currently trade," said analyst Brian Abrahams.
"Optimism remains for sector performance through the end of 2014, we believe, reflecting appropriate value of the strong fundamentals and growth within the group which should start to come through as the dust settles. Drug pricing concerns have increased albeit not dramatically, and amongst large-cap companies, investors favor BIIB (Nasdaq: BIIB) and GILD (Nasdaq: GILD) – the latter of which we view as compellingly valued especially given what look to be beatable buyside expectations for Sovaldi and our view of GILD's underappreciated pipeline. Though it is difficult to call a bottom as the sector continues to rebalance, we see opportunities to add to or build positions in GILD, CELG (Nasdaq: CELG), VRTX (Nasdaq: VRTX), PCYC (Nasaq: PCYC), ITMN (Nasdaq: ITMN), FPRX (Nasdaq: FPRX), and ARRY (Nasdaq: ARRY)," added the analyst.
"To gauge where sentiment lies following the recent biotech correction, we conducted a survey of investors. Based on the results, we believe that while we could see additional volatility in the coming days to weeks, there would likely be strong support for the sector at levels modestly lower than where stocks currently trade," said analyst Brian Abrahams.
"Optimism remains for sector performance through the end of 2014, we believe, reflecting appropriate value of the strong fundamentals and growth within the group which should start to come through as the dust settles. Drug pricing concerns have increased albeit not dramatically, and amongst large-cap companies, investors favor BIIB (Nasdaq: BIIB) and GILD (Nasdaq: GILD) – the latter of which we view as compellingly valued especially given what look to be beatable buyside expectations for Sovaldi and our view of GILD's underappreciated pipeline. Though it is difficult to call a bottom as the sector continues to rebalance, we see opportunities to add to or build positions in GILD, CELG (Nasdaq: CELG), VRTX (Nasdaq: VRTX), PCYC (Nasaq: PCYC), ITMN (Nasdaq: ITMN), FPRX (Nasdaq: FPRX), and ARRY (Nasdaq: ARRY)," added the analyst.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Kite (GILD) and Arcellx (ACLX) Continue Momentum with Advances in Anito-Cel Multiple Myeloma Program
- Arcellx and Kite Continue Momentum with Advances in Anito-Cel Multiple Myeloma Program
- JFrog (FROG) PT Lowered to $46 at KeyBanc
Create E-mail Alert Related Categories
Analyst Comments, ETFs, Hot CommentsRelated Entities
Wells FargoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!