RBC Sees Gilead Climbing 31% in 12 Months

Barron’s gives Gilead Sciences (GILD) some love:

Gilead, however, may yet prove its critics wrong.

It dominates a $13 billion global market for AIDS drugs, generates huge amounts of cash and has a promising pipeline that could produce new blockbuster AIDS medications in the next two years.

And at just over nine times earnings, the stock offers investors a compelling bargain.

“The stock’s fall from grace has been too significant, and I see it grinding its way higher,” says Kris Jenner, manager of the T. Rowe Price Health Sciences Fund.

How high?

RBC Capital Markets sees the stock climbing 31% in the next 12 months. Meanwhile, UBS Securities analyst Matt Roden launched a Buy rating on the stock on Nov. 16 and a $44 target price.

“It trades at a multiple that’s in-line with Big Pharma, but Gilead’s growth prospects are comparatively better,” says Roden.

Posted by on November 30th, 2010 at 6:54 pm


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