What Are Analysts’ Recommendations for Gilead Sciences in 2017?



Analysts’ recommendations for Gilead Sciences

2016 proved to be a challenging year for Gilead Sciences (GILD), mainly due to its falling hepatitis C (or HCV) franchise revenue. The company reported revenue of $30.4 billion in 2016, a year-over-year (or YoY) fall of ~7%.

While HCV product sales suffered in 2016, the impact was partially offset by a rise in HIV product revenue and sales in other therapeutic areas.

If Gilead Sciences continues with this negative revenue and EPS trend in 2017, it may see an unfavorable impact on its share price. The share price of the S&P 500 SPDR ETF (SPY) could also see the effects. Gilead Sciences makes up ~0.45% of SPY’s total portfolio holdings.

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Of the 29 analysts covering Gilead Sciences in February 2017, four have rated the company as a “strong buy,” and 12 have rated it as a “buy.” Thirteen analysts have rated Gilead as a “hold,” and none have rated it as a “sell” or a “strong sell.” Approximately 55% of analysts have given the company some form of “buy” recommendation.

Peers’ ratings

Of the 25 analysts covering Amgen (AMGN) in February 2017, ~56% have rated the company as a “buy.” Approximately 68% of the 25 analysts covering Biogen (BIIB) have given it “buy” recommendations this month. Further, ~83% of the 29 analysts covering Celgene (CELG) have rated the company as a “buy” this month.

In the next article, we’ll discuss revenue projections for Gilead Sciences’ 2017 in greater detail.



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