Gilead Sciences (GILD) PT Lowered to $79 at Credit Suisse, Says M&A Is Upside Driver From Here

Credit Suisse lowered its price target on Gilead Sciences (NASDAQ: GILD) to $79.00 (from $93.00) while maintaining a Outperform rating.

Analyst Alethia Young comments "Growth likely through M&A (or deployment of cash) has to be the core of our thesis from here. If we assume Gilead acquires a company with $2B revenue potential by 2022, our valuation would be $85/share. We worry that if we see no deals this year Gilead shares may be stalled. If we look out 2 years, we think that Gilead will have had to have done something with its cash. We think Gilead is looking to beef up its oncology efforts. When we asked post call, its R&D head noted that there is a big effort ongoing. The company also sounds very positive on prospects of filgotinib use across various indications. Key risks includes continued deceleration in HCV, potential generic competition across HIV, and business development activities that underperform expectations."

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