Needham & Company Downgrades Gilead Sciences (GILD) to Hold
Needham & Company downgraded Gilead Sciences (NASDAQ: GILD) from Buy to Hold.
Analyst Alan Carr commented, "Gilead reported 2Q16 financial results yesterday. Product sales of $7.65B were consistent w/ our $7.71B and consensus $7.77B expectations. WW Harvoni and Sovaldi sales were $2.56B and $1.36B respectively, compared to consensus $2.87B and $1.19B. Mgmt lowered 2016 revenue guidance by $500M to $29.5B-30.5B, citing challenges in HCV, including fewer pt starts and shorter tx duration, contributing to decline in revenue/ pt. We expect this trend to continue.
Although we expect Gilead to retain generally dominant share in HCV and regain momentum w/ launch of TAF/FTC/BIC in HIV, overall revenue growth is a concern. We are downgrading to HOLD (was BUY). Favorable view may be restored w/ more evidence of substantial growth potential derived from M&A or internal pipeline. Areas of opportunity include HBV, liver disease, and oncology."
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Shares of Gilead Sciences closed at $88.55 yesterday.