Citigroup Reiterates Buy, $49 Target on Gilead Sciences

Citigroup maintains its Buy rating and $49 target price on Gilead Sciences (NASDAQ: GILD) as the company's HRS refiling with FTC should not affect tender deadline of midnight on January 12.

Citigroup says, "Gilead today filed with SEC a document noting that it has pulled back and re-filed its HSR documents for the Pharmasset acquisition with the Federal Trade Commission. We believe that Gilead did so in coordination with FTC and this will now open a new 15-day review period. In our view, this strategy allows Gilead to answer any of FTC's questions in a timely manner and avoiding having a Second Request. Thus, assuming that FTC will be satisfied with the re-filing and does not make a Second Request, Gilead should be able to get HSR approval and close the tender at midnight on Jan 12th. We believe that Gilead is comfortable that it will be able to obtain HSR approval within that timeline."

GILD closed at $39.88 per share on Tuesday.