Gilead Sciences (GILD) PT Trimmed to $141 at Nomura Posts Q4
Nomura Securities analyst M. Ian Somaiya trimmed his price target on Buy-rated Gilead Sciences (NASDAQ: GILD) to $141.00 (from $146.00) following results after the close.
Somaiya commented, "We expect the shock of aggressive discounting by Gilead (46% vs. our 20% estimate) on its HCV drugs to lead to downward revision of consensus 2015 revenue estimates and cause GILD shares to trade down tomorrow despite the company securing open access for patients and at the same time raising the competitive bar. We expect aggressive discounting to lead to significantly higher patient volume (Gilead estimates 500,000 patients treated WW in 2015) and Harvoni’s best-in-class profile to enable Gilead to maintain majority share. This results in our HCV franchise estimates moving lower going forward, with our revised TP of $141, down from $146, supporting our Buy rating.
The firm maintained FY15E EPS at $10.13; FY16E EPS at $10.86.
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Shares of Gilead Sciences closed at $107.18 yesterday.