Gilead Sciences (GILD) Estimates Trimmed at Needham & Company Post Q4; 'Buy' Maintained
Needham & Company analyst Alan Carr lowered estimates on Gilead Sciences (NASDAQ: GILD) following Q4 results but maintained a Buy rating and price target of $120.
Carr commented, "4Q14 Sovaldi sales were $1.73B, compared to our $1.90B estimate. Ex-U.S. sales were lower than we expected. Mgmt guided for step up in growth in EU in 2015 given recent completion of Sovaldi price negotiations in key countries. Harvoni was launched in Oct 2014 in the U.S. and generated $2.11B in WW sales, compared to our $1.28B estimate. Gilead reported $7.22B in total product sales, above our $6.15B estimate. Mgmt issued guidance for $26-27B in 2015 product sales, slightly under our and consensus expectations. Recent pressure from payers around HCV drug costs has had an impact and mgmt guided for Sovaldi/ Harvoni gross-net margin growing from 22% at YE14 to 46% in 2015. We reiterate BUY and $120 price target."
The firm's new 1Q15 and 2015 product sales estimates are $6.57B (was $6.41B) and $27.71B (was $27.47B). 2015 WW Sovaldi and Harvoni estimates are $3.77B (unch) and $11.56B (was $11.44B). The firm adjusted FY 2015 EPS from $8.74 to $8.66.
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Shares of Gilead Sciences closed at $107.18 yesterday.