Goldman Sachs maintained a Neutral rating on Gilead Sciences (NASDAQ: GILD) and raised its price target to $65.00 (from $63.00).

Analyst Terence Flynn said, "Sovaldi posted an impressive beat in its first full quarter on the US market and we raise our 2014 sales estimate. Sovaldi 1Q US sales of $2.1bn were driven by demand and increased inventory (GILD noted inventory is difficult to quantify, but looking back on Incivek suggests 2-3 weeks or $400mn vs. $70mn in 4Q13). To date in the US ~30K patients have initiated treatment (70% G1) and the payer mix is roughly 45% commercial, 45% Medicare and 7% Medicaid. GILD noted that negotiations with payers are progressing in line with expectations and it remains confident in the drug’s value proposition. Some payers are trying to restrict Sovaldi to later-stage patients and some EU countries are likely to take a staged approach to treatment, which could somewhat gate sales. Our focus is on our TAM analysis and sustainability, which suggests expectations remain high."

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Shares of Gilead Sciences closed at $72.86 yesterday.