UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Gilead Sciences on Positive Outlook

In a report published Wednesday, Citigroup analyst Yaron Werber reiterated a Buy rating on

, and raised the price target from $85.00 to $87.00. In the report, Citigroup noted, “Gilead's stock has been posting impressive gains ahead of the much anticipated launch of sofosbuvir for hepC by the Dec 8th PDUFA deadline. One of the key questions we have been getting is whether the company's market cap of $118B is getting ahead of itself. In our view, we disagree given that the stock is slated to grow EPS at 54% CAGR in 2013-'16 and is trading at only 20x FY14 EPS. As our EPS ests remain dramatically above consensus and as we view our ests to be conservative, we believe that the stock will continue to post solid gains. We are raising our TP to $87 (+$2) as we are raising our FY14 EPS to $3.46 (+$0.05) due to a lower share count and slightly higher sofosbuvir sales.” Gilead Sciences closed on Tuesday at $69.52.