J.P. Morgan Reiterates Overweight Rating, $65 PT for Gilead Sciences

In a report published earlier today, J.P. Morgan & Co. reiterated its Overweight rating and $65.00 price target for Gilead Sciences

. J.P. Morgan said it made its decisions “on the basis of solid fundamentals in HIV (increasing diagnosis rates, focus on treating patients earlier, and potentially prevention) and successful lifecycle management of its core HIV business. In addition, Gilead now has a hep C franchise that is gaining significant momentum based on the acquisition of Pharmasset, with lead drug PSI-7977 ahead of the pack in a very “hot” therapeutic market. We anticipate continued growth in HIV driven by a combination of Complera / Eviplera (approved: Aug 2012 in the US /Nov 2012 in the EU) and the QUAD (PDUFA date: Aug 27, 2012). Finally, the acquisition of Pharmasset transforms Gilead's growth profile with the addition of a market leading nuc (PSI-7977), with multiple material clinical datapoints in 2012. With Gilead trading at a discount to peers based on a P/E multiple, these opportunities are not captured at current levels, in our view.” Gilead Sciences closed yesterday at $51.87.