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.