Nomura Securities analyst M. Ian Somaiya reiterated a Buy rating. Pt $141
Nomura Securities analyst M. Ian Somaiya reiterated a Buy rating and boosted his price target on Gilead Sciences (NASDAQ: GILD) to $141.00 (from $130.00) given his bullish view on Sovaldi.
Somaiya commented, "We raise our TP on GILD to $141, from $130, on strength of prescription data for Sovaldi and our assumptions for peak sales of $22bn (up from $16bn) based on launch of new two-drug and three-drug HCV combos in 2017 and 2018, respectively. We expect Phase I/II data by year-end to confirm their ability to maintain cure rates above 90%, while reducing treatment duration to six weeks. Our revised model strengthens our view that GILD is the most attractively priced large-cap growth stock in the healthcare industry, with a 2015E P/E of 11.2x. With free cash flow expected to reach ~$8.8bn in 2014 and ~$13bn in 2015, we believe GILD will not only continue to aggressively buy back shares, but also introduce a dividend in 2015."
The firm maintained FY14E EPS at $7.5; FY15E EPS at $8.14.