Analysts rate Gilead Sciences Inc. (GILD:NSD) with a Buy rating, $76 Target

STA Research
by: STA Research

Analysts rate Gilead Sciences with a consensus Buy rating and a 12-month average Target price of $75.79 per share.

BMO Financials initiated Gilead Sciences with a Hold rating,  and set the target on the stock at $65.

RBC Royalbank maintained the Outperform rating on the stock, and cut the target from $85 to $77.

Based on the Gilead Sciences Inc. stock forecasts from 13 analysts, the average analyst target price for Gilead Sciences Inc. is USD 75.79 over the next 12 months. Gilead Sciences Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Gilead Sciences Inc. is Bullish, which is based on 11 positive signals and 4 negative signals. At the last closing, Gilead Sciences Inc.’s stock price was USD 60.26. Gilead Sciences Inc.’s stock price has changed by -0.14% over the past week, -3.50% over the past month and -6.93% over the last year.

Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company was incorporated in 1987 and is headquartered in Foster City, California.

What we like:

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on a cash flow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on a free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Dividend Growth

This stock has shown top quartile dividend growth in the previous 5 years compared to its sector

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged

Compared to its sector peers on debt to equity, the company is in the bottom half and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

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