GILD’s Resurgence Could Result in Additional 30% Profits

Gilead Sciences poised to take out resistance at the old highs

   
GILD’s Resurgence Could Result in Additional 30% Profits

Gilead Sciences (GILD) — This has been a favorite biotech stock of mine since November 2012, when I recommended it near $37.50. I have covered it numerous times since then, most recently on April 15.

On April 22, the company reported non-GAAP diluted EPS of $1.48 per share versus a consensus estimate of $0.91. The next day, S&P reiterated its “strong buy” rating, raising it price target to $130 from $116. It cited continued robust sales of Gilead’s hepatitis C treatment, Sovaldi, and HIV treatment Stribild.

GILD was the victim of profit-taking in the biotech sector and pressure from the government to lower the price of Sovaldi. S&P analysts said they believe Gilead will make “some pricing concessions” for Medicaid patients.

The stock completed a bullish “V” bottom. Resistance remains at GILD’s old high at just under $85, but once this is exceeded our target is $105.

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chart key 300x84 GILD's Resurgence Could Result in Additional 30% Profits


Article printed from InvestorPlace Media, http://investorplace.com/2014/05/trade-day-gilead-sciences-gild-7/.

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