Gilead Sciences (GILD) Higher as UBS Raises Target

UBS boosted its price target on Buy-rated Gilead Sciences (NASDAQ: GILD) from $65 to $80 on lower risk to HCV.

"We are raising our Gilead revenue and EPS estimates to reflect feedback from recent meetings with HCV stakeholders, as well as abstract data released ahead of the AASLD meeting," analyst Matthew Roden, PhD notes. "Recall we attended the S2E-HCV workshop last month, and came back unable to defend our conservative views on HCV diagnosis rates (previously flat in our model) and on modest initial GS-7977 market share."

The firm revised their HCV model as several factors will drive higher revenue: : [1] Diagnosis rate is fundamental to long-term revenue growth, and activism and CDC initiatives should drive rates higher. [2] Despite competing DAAs on the market, stakeholders expect GS-7977 to dominate initial market share. [3] Positive GS-5885 safety data in AASLD abstracts lower the risk to the GS-7977/5885 combo, driving our base case and bull case valuations higher.

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 last traded at $70.05, up 1.3 percent.

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