Health and Healthcare
Goldman Sachs Crushes Value and Turnaround Hopes of Gilead Sciences
Published:
Last Updated:
Gilead Sciences Inc. (NASDAQ: GILD) quite recently has been considered as both a value stock and as a turnaround candidate for long-term views. Goldman Sachs has muted that upside view by downgrading Gilead Sciences to Sell from Neutral and lowering its price target to $60 from $70.
All in, Goldman Sachs’ Terence Flynn sees 10% downside rather than an average upside of about 17% from most analysts. Flynn is worried about the upcoming loss of exclusivity over two HIV drugs made by Gilead, and the analyst is worried about the firm having a very limited pipeline in the mid to late stages with a limited portfolio of drugs under development.
The Goldman Sachs report also noted that the company has seen some setbacks from drug studies of late. On the HIV aspect, the worry is about the upcoming exclusivity of Truvada and Atripla at a time when rival GlaxoSmithKline is set to release a long-acting injectable treatment for HIV in the next year.
Just last week, Citigroup upgraded Gilead Sciences to Buy from Neutral with a $78 price target. The analyst there sees value driving the cart after multiple quarters of shares not performing well. Gilead shares traded at $66.96 after that call, in a 52-week range of $60.32 to $79.61 and with a consensus target price of $80.51.
On May 21, Credit Suisse initiated coverage with a Neutral rating, but its $70 price target still offered some implied upside. Late in April, Bernstein issued an Outperform rating with an $82 price target.
While Gilead is often considered one of the top screens for value investors at under 10 times earnings, investors also understand that being “cheap” is usually for a reason.
Short sellers also have recently increased their bets on downside for Gilead, along with other major biotechs.
Gilead Sciences was last seen trading down 2.8% at $65.01 on Tuesday, and the consensus target price of $80.51 had not yet reflected of the downgrade.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
