Nothing like we saw in 2000. Some areas are a little frothy. Not Apple.
Cites $190 target bullish-case:
...Apple Inc. ( AAPL ) could be valued above $1 trillion within the next 12 months from nearly $750 billion today, according to the new bull-case price target set Monday by Morgan Stanley. The brokerage raised its 12-month stock price target to $160, from $133 previously, and established a $190 bull-case scenario, calling Apple's ( AAPL) expanding ecosystem, including the upcoming Apple Watch launch, a "virtuous cycle" that could quadruple Apple's ( AAPL) total addressable market within five years. Analyst Katy Huberty, whose price target puts her among the most bullish Apple ( AAPL) analysts on Wall Street, also pointed to Apple's ( AAPL) potential in the auto, health and television markets, saying Apple ( AAPL) products and services could eventually address user needs in roughly 75% of their day, up from 33% currently. Shares of Apple ( AAPL) traded up 0.2% to $128.71 in recent trade. They are up more than 71% over the last year. The average price target among more than 40 analysts is currently $134.32, according to FactSet.
Not all media just certain segments. This morning when I turned Bloomberg on, there was news regarding GILD's HIV drug showing improvement in kidney function which I felt may have given GILD a boost on the open. I was surprised to se it sell off but see Yahoo blasting news on BMY's HepC drug. This is all derived to move the stock and keep it volatile on options expiration day imo. Maybe when the RX #'s come out we'll see some improvement.
I think it's ripe for a run actually but somewhat is a "wait and see!" The Street is concerned about the discounts (42%) but after listening to the website conf yesterday GILD was trying to ease that concern but talking volume of HepC drug sales as they move into Europe, India and so forth. The div also scared some analysts as they perceived this as slower growth. What I took out of the conference is the buyback is over 5 years not the general 3 years with the bulk of the 2015 buyback now done for this year as they move into the div payout. They want to preserve capital for cap ex and are moving more aggressively into oncology thus the 5 year plan. At least that's what I thought from the presentation.
RBC's Michael Yee and team met with Gilead Sciences ( GILD ) management and came away feeling good about its prospects:
Our call is that the stock should generally grind back up because Gilead should hit 2015 consensus estimates (we're at high end of guidance) and the company is aggressively buying back stock, so downside is limited and it is now implementing a dividend. Low P/E and significant cash combine to give lots of "optionality" if pipeline and BD pick up...
Despite dividends and buybacks, there's plenty of financial flexibility for BD, but expect they will remain focused and consistent in their known stregths, primarily in Phase II assets where they can leverage their regulatory expertise. Areas of interest remain oncology and inflammation (we think Esperion Therapeutics ( ESPR ) would be interesting for their cardio-pulmonary business)...
We think the totality also has "value" investors keeping an eye on this.