Could Gilead Sciences Stock Skyrocket 25%? 1 Analyst Thinks So
Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Since Gilead Sciences (NASDAQ: GILD) announced its plan to buy Kite Pharma (NASDAQ: KITE) for $11.9 billion on Monday, Gilead stock has enjoyed a big 12% bounce -- but analyst reaction has been mixed.
R.W. Baird quickly came out with a note highlighting the risks of Gilead competing in the cancer sphere, where Novartis just notched a victory with FDA approval of its CAR-T gene therapy. Given the competitive threats, Baird dismissed Gilead's move into oncology as "incrementally negative" for the stock. Mizuho Securities did a quick straw poll of investors and concluded that "60% of respondents believe Gilead overpaid for Kite," while Credit Suisse begged to differ, raising its price target for the biotech's stock.
Source: Fool.com