Gilead Sciences (GILD) PT Trimmed to $116 at Piper Jaffray as Guidance was a Letdown
Piper Jaffray analyst Joshua Schimmer weighed in on Gilead Sciences (NASDAQ: GILD) following solid Q4 results but noted guidance was a letdown. The firm maintained an Overweight rating and trimmed its price target to $116.00 (from $120.00).
Schimmer commented, "GILD reported a solid 4Q performance led by the HCV franchise, but conservatively guided below Street expectations for 2015 revenue and noted payor discounts on the franchise would increase from 22% in 2014 to 46% in 2015. While new guidance leaves room for upside, the company also noted a number of obvious factors driving uncertainty in the outlook for Sovaldi/Harvoni. Most disappointing to us was the company's continued refusal to help investors gauge prospects for sustainable earnings growth, instead offering some verbal commitment to fund a R&D pipeline which we view as undervalued but in need of improvement. We reiterate our OW, and our PT falls from $120 to $116. While not a favorite stock, we still believe GILD can grind out >10% share appreciation this year."
The firm lowered FY 2015 EPS from $9.70 to $9.38 and bumped FY 2016 EPS from $9.55 to $9.59.
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Shares of Gilead Sciences closed at $107.18 yesterday.