Just what we needed this morning, an upgrade by Goldman. Put GILD on recommended list. Can anyone say $70 by the end of the week. This stock is incredible!
7:51AM Gilead Sciences (GILD) 63.84: Goldman Sachs upgrades to RECOMMENDED LIST from Mkt Outperform, based valuation and strong 2002 sales prospects, solid pipeline, and nearing profitability; key growth driver will be Viread. Firm maintains $75-$80 price target.
Basically since John Martin all but said that Tenofovir sales won't be a disaster, that's enough to get the stock up a few bucks.
Tells you how much event risk on a Tenofovir sales dissapointment the market was pricing in.
The other risk of course is if GILD takes over another biotech firm with a (relatively) large market cap. I'd say anything over a $600M acquisition would affect GILD's stock price.
Implied volatility is low, this still suggests that GILD is going to be trading in the 60-70 dollar band. Selling one-month at the money covered when/if the common stock hits 70-71 bucks might be the viable strategy. We'll see how it unfolds.