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Analysts’ Recommendations for Gilead Sciences in July 2017

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Aug. 1 2017, Updated 6:43 a.m. ET

Recent developments

On July 18, 2017, the FDA approved Gilead Sciences’ (GILD) Vosevi for the re-treatment of chronic hepatitis C virus (or HCV) genotype 1, 2, 3, 4, 5, or 6 infections in adult individuals who were earlier treated with an NS5A (nonstructural protein 5A) inhibitor-containing regimen.

Vosevi is also indicated for re-treatment in adult individuals with HCV genotype 1a or 3 infections who previously underwent therapy with a sofosbuvir-containing regimen without an NS5A inhibitor.

On July 28, 2017, the European Commission granted Marketing Authorization for Vosevi as a once-daily, single-tablet regimen for the treatment of HCV infections of all genotypes.

The launch of Vosevi is expected to strengthen Gilead Sciences’ HCV business. Gilead Sciences’ revenue growth could boost the iShares Nasdaq Biotechnology ETF (IBB). Gilead Sciences comprises ~9.2% of IBB’s total portfolio holdings.

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Analysts’ recommendations

Twenty-five analysts covered Gilead Sciences in July 2017. One analyst recommended a “strong buy,” ten analysts recommended a “buy,” and 14 analysts recommended a “hold.” None of the analysts covering Gilead Sciences recommended a “sell” or “strong sell.”

Around 44% of the analysts recommended some form of a “buy” rating for Gilead Sciences in July 2017. On July 31, 2017, Gilead Sciences’ mean 12-month target price was $79.68.

Peers’ ratings

Twenty-two analysts covered Johnson & Johnson (JNJ) in July 2017. Around 45% of the analysts recommended some form of a “buy” rating for JNJ.

Out of 22 analysts analyzing Merck (MRK) in July 2017, ~64% of the analysts recommended some form of a “buy” rating for MRK.

Out of 21 analysts analyzing AbbVie (ABBV) in July 2017, around 48% of the analysts recommended some form of “buy” rating for ABBV stock.

On July 31, 2017, Johnson & Johnson, Merck, and AbbVie have consensus target prices of $137.10, $70.00, and $75.44, respectively.

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