Gilead Sciences "buy," target price raised

04/19/06 - Stifel Nicolaus

NEW YORK, April 19 (newratings.com) - Analysts at Stifel Nicolaus & Company reiterate their "buy" rating on Gilead Sciences Inc (GILD), while revising their estimates for the company. The target price has been raised from $63 to $69.

In a research note published this morning, the analysts mention that the company has reported its 1Q06 EPS ahead of the estimates and the consensus, driven by substantial Tamiflu royalties and the robust performance of its HIV franchise products. Sales of Truvada and Viread were ahead of the estimates, the analysts say. Gilead Sciences appears to be on schedule to filing an NDA for the Truvada-Sustiva co-formulation pill in 2Q06, Stifel Nicolaus & Company adds. The EPS estimate for 2006 has been raised from $2.08 to $2.13. The EPS estimate for FY07 has been reduced from $2.66 to $2.54.