【why are group homes so secretive about there residents wi】Gilead Sciences Could Be the First to Beat the Coronavirus
Thewhy are group homes so secretive about there residents wi coronavirus’ grip on the market continues. Since the beginning of February, the S&P 500 has shed 8.5% of its value, a reflection of the effect the outbreak is having on the global economy. Amidst the bloodbath, one specific group of stocks is holding up. These are the drug companies those infected, the public at large and investors are hoping can halt the virus from spreading any further. Gilead Sciences (
GILD
) is among those leading the search for a treatment and is currently being rewarded by the market. In contrast to the broader market, GILD stock is up 23% year-to-date.
Remdesivir, one of the company’s existing drugs which was previously tested as a possible treatment for Ebola, is being tested as a potential treatment for COVID-19.
Gilead has initiated two Phase III studies in China, one in severe patients and one in patients with moderate symptoms. The trials will have short endpoints (14 days), with the possibility of data readouts in April.
In addition to the coronavirus developments, Gilead also recently announced it will acquire immuno-oncology specialist Forty Seven, in a deal worth $4.9 billion.
While Jefferies’
Michael Yee
remains positive on Gilead’s prospects, the 4-star analyst tempers expectations of the drug’s financial impact. “We applaud the efforts - but reiterate while this is fundamentally positive, the financial implications are modest (pricing, one-time use, no tail). Also, in our discussions, while GILD is hopeful on the efficacy, they caution CV should not be a key driver to valuation, since it is mostly humanitarian and unlikely to drive any material benefits. In our math, even at a $1,000-5,000 price x 500,000 estimate points, this is $500 million-$2 billion-plus but GILD has been known to give away aid to regions at cost,” said Yee
Yee reiterated a Buy on Gilead, along with a price target of $76. Gilead’s recent surge means the figure currently implies possible downside of 5.26%. (To watch Yee’s track record,
click here
)
Maxim Group’s
Jason McCarthy
is also skeptical of the drug’s ability to drive profit.
The analyst noted, “The coronavirus threat is real, and it should be a concern to the public-no question. However, from an investing perspective, we view remdesivir as a relatively modest opportunity at best for Gilead, and not a growth driver. That said, we are not at all minimizing Gilead's efforts to rapidly advance remdesivir to see if they have a drug for coronavirus that could save lives. Actually, the company's efforts are impressive to say the least. We are looking at it purely through the lens of the value proposition and the growth prospects of the company; fundamentals vs. hype.”
Story continues
Accordingly, McCarthy remains on the fence and maintains his Hold rating. The analyst currently has no price target. (To watch McCarthy’s track record,
click here
)
The Street’s take on the virus fighter is currently split almost evenly down the middle. 9 Buys, 9 Holds and 1 Sell add up to a Moderate Buy consensus rating. The average price target is $75.94 and implies that the analysts see the stock dropping 5.34% from current levels. (
See Gilead stock-price forecast on TipRanks
)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’
Best Stocks to Buy
, a newly launched tool that unites all of TipRanks’ equity insights.
View comments
-
Car rental firm Hertz gets more time from lenders to avoid bankruptcy3 Big Stock Charts for Friday: PulteGroup, Microsoft and HologicDubai 2019 budget to slow spending growth, sees small revenue riseEM ASIA FX-Indonesian rupiah, Thai baht drop; Philippine peso firmsOne Metric To Rule Them All: Ground Rents Income Fund PLC (LON:GRIO)Windhand announce new album, Eternal Return, unveil “Grey Garden”: StreamSouth Korea's December exports in surprise fall as global economy cools amid China-U.S. disputeHow Your Credit Card Can Keep You From Buying a HomeAre Insiders Buying Arena Events Group plc (LON:ARE) Stock?Weight Watchers posts dynamite earnings, and the stock is soaring
下一篇:RTX CLASS ACTION FILING DEADLINE: Bernstein Liebhard LLP Reminds Investors of the Deadline to File a Lead Plaintiff Motion in a Securities Class Action Lawsuit Against Raytheon Technologies Corporation
- ·German carmakers had crisis call with Merkel: Handelsblatt
- ·Is Advance Auto Parts (AAP) Stock Outpacing Its Retail-Wholesale Peers This Year?
- ·Why Chanhigh Holdings Limited’s (HKG:2017) Return On Capital Employed Might Be A Concern
- ·The Latest: Ariz. gov. rejects call for online learning
- ·35 Surprising Cities With Low Costs of Living
- ·The Latest: Bankruptcy judge allows PG&E to make $1.5B loan
- ·Calculating The Intrinsic Value Of Avis Budget Group, Inc. (NASDAQ:CAR)
- ·Top Picks 2019- Twilio TWLO
- ·Wealth Glory Holdings Limited (HKG:8269): Did It Outperform The Industry?
- ·At UK£1.43, Is Hays plc (LON:HAS) Worth Looking At Closely?
- ·What Is Birth Tourism? U.S. Arrests China-Linked Operators for the First Time
- ·BRIEF-Harbin Dongan Auto Engine Says It Sold 12,534 Engines In Jan, Up 19.8 Percent Y/Y
- ·Arch Coal (ARCH) Down 22.8% Since Last Earnings Report: Can It Rebound?
- ·BRIEF-Beijing Thunisoft Gets Regulatory Approval For Share Private Placement
- ·BRIEF-Eastern Gold Jade's Chairman Zhao Ning Resigns After Company Expects Net Loss For 2018
- ·Trump, Pelosi stances on wall suggest deal will be difficult
- ·A village of tiny Victorian homes offers a life-changing experience
- ·BRIEF-TFG International Group Says Wong Kui Shing, Danny Ceased To Be CEO
- ·Is Antipa Minerals Limited's (ASX:AZY) CEO Being Overpaid?
- ·EMERGING MARKETS-Brazil's real firms against dollar, bucking Latam trend
- ·Is There Now An Opportunity In Sotherly Hotels Inc. (NASDAQ:SOHO)?
- ·Turkey tells U.S. its trade is in line with international laws - Turkish official
- ·3 Myths About Public Service Loan Forgiveness for Physicians
- ·7 Bargain-Bin ETFs For Frugal Investors
- ·Domino's (DPZ) Opens 17,000th Store, Expands in Australia
- ·BRIEF-Inno-Tech Says Wang Yu Resigned As Chief Executive Officer
- ·Wisconsin Father Hits 500,000 Push-up Milestone on the Path to Break World Record
- ·WitcherVerse Continues to Storm the Market with Topping the Charts on CoinMarketCap
- ·Loss-Making Bass Metals Limited (ASX:BSM) Expected To Breakeven
- ·Fidelity: Ignore stock market turbulence and stick to long-term goals
- ·Energy Fuels Inc.'s (TSE:EFR) Intrinsic Value Is Potentially 96% Above Its Share Price
- ·What Kind Of Shareholders Own CWT International Limited (HKG:521)?
- ·“Heartbroken” Amber Heard Speaks Out After Johnny Depp Wins Defamation Case
- ·Dover Corporation (NYSE:DOV): What’s The Analyst Consensus Outlook?
- ·Business owners contend with threat, reality of coronavirus
- ·Social Security's Worrisome Lesson From the Government Shutdown