Yahoo Finance The Word on the Street: What Analysts Are Recommending for Gilead Sciences Now
The Real Story behind Gilead Sciences' Valuations in 2016
Analyst recommendations
Most analysts have updated their recommendations for Gilead Sciences (GILD) after the company released its 1Q16 earnings on April 28, 2016. In addition to projections for the commercial success of the company’s existing product portfolio, analysts also consider the probability of success of the research molecules while recommending action for the company’s stock.
The above table shows 19 brokerage companies and their price targets for Gilead Sciences. The consensus 12-month target price for the company is $113.4, which translates to a return of about 28.6% compared to Gilead’s share price on April 29, 2016.
In Bloomberg’s survey of 30 brokerage companies on April 29, 2016, about 63% of brokers rated Gilead Sciences as a “buy,” while 37% rated the company as a “hold.” None of the surveyed brokers rated Gilead Sciences as a “sell.”
If the company proves successful in realizing these projections, it may also boost the share prices of the iShares Nasdaq Biotechnology ETF (IBB). Gilead Sciences makes up about 7.2% of IBB’s total portfolio holdings.
Analyst recommendations for peers
Based on the April 29 Bloomberg survey, among Celgene (CELG), AbbVie (ABBV), and Amgen (AMGN), Celgene managed to be the company with the highest percentage of analysts issuing a buy recommendation. Out of 29 brokerage firms, 80.8% brokers rated Celgene as a “buy,” while 15.4% rated the company as a “hold.” About 3.8% of the surveyed brokers rated Celgene as a “sell.”
AbbVie received “buy” recommendation from about 68.2% of the 24 brokers surveyed for the company, whereas 27.3% rated the company as a “hold.” About 4.5% of the surveyed brokers rated AbbVie as a “sell.”
Amgen was rated as “buy” by about 50.0% of the 29 brokers surveyed for the company, whereas 46.2% rated the company as a “hold.” The remaining 3.8% of surveyed brokers rated Amgen as a “sell.”
In next part, we’ll go deeper into Gilead Sciences HIV (human immunodeficiency virus) segment strategy in the US.
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