Gilead Sciences (GILD) PT Lowered to $108 at Piper Jaffray
Piper Jaffray analyst Joshua Schimmer lowered his price target on Gilead Sciences (NASDAQ: GILD) to $108.00 (from $114.00) following results and lowered guidance but maintained an Overweight rating.
Schimmer commented, "After the close, GILD reported 2Q results, lowering its revenue and raising its opex guidance for the year. The HCV franchise struggled due to a variety of factors but a reserve adjustment and the HIV franchise saved the day to deliver in-line revenue; substantial share repurchase and a $200M litigation charge reversal helped drive a modest bottom line beat. While the LT outlook for the HCV franchise is murky, the strong performance of the emerging TAF-based HIV therapeutics is meaningful for delivering more sustainable revenue. We see the pipeline as deficient, overly speculative and in need of new direction and are optimistic that will occur once a series of datasets over the course of the next 6-12 months likely confirm our views. We are adjusting estimates and lowering our PT from $114 to new $108 based on our revised projections."
The firm lowered FY 2016 EPS from $12.10 to $11.87 and FY 2017 EPS from $12.53 to $11.29.
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Shares of Gilead Sciences closed at $88.55 yesterday.