J.P. Morgan Is Watching This 'Curve Ball' At Gilead

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In a report published Wednesday morning, J.P. Morgan analyst Cory Kasimov reiterated an Overweight rating on Gilead Sciences, Inc.GILD following fourth quarter earnings on Tuesday.

Related Link: Gilead Sciences Beats Q4 Views But Outlook Disappoints, Shares Fall

According to Kasimov, the company’s performance did exceed expectations, but “high discounting again brings tail into question.”

In other words, the earnings report came with “a curve ball (…) Namely, GILD’s expectation for the gross-to-net on HCV products to be ~46%, more than double the 22% at the end of 2014, caught just about everyone by surprise.”

Several other analysts have weighed in on the stock following earnings.

CMT Christian Tharp also had this to say before the call: “Over the last 5 months GILD has stalled at its $110 resistance on 3 separate occasions. The one time the stock pushed above that mark it led to a high of almost $117/share. Watch for GILD to possibly break that $110 mark on a well received earnings report. Otherwise, $100 is the key level to monitor on the downside.”