Market Overview

Barclays Analyst Pens Open Letter To Gilead Board And Management

Share:
Barclays Analyst Pens Open Letter To Gilead Board And Management

On Friday, Barclays analyst Geoff Meacham veered from his typical approach of addressing clients and chose to speak directly to management at Gilead Sciences, Inc. (NASDAQ: GILD). Meacham chose to structure his latest research note on the pharma giant as a letter to the company, which included five recommendations for ways the company could potentially boost its market valuation.

According to Meacham, market sentiment toward Gilead seems to be at a low point recently.

“The purpose of this letter isn’t to single out your company as one that has been mismanaged (it hasn’t); rather, it is to provide context for the current valuation and with five concluding recommendations, help carve a roadmap to a re-rating,” Meacham explained.

5-Step Process

Barclays believes Gilead management can be proactive by taking the following five steps:

    1. Consider transformational M&A deals outside of the company’s core businesses.
    2. Consider cutting costs in the hepatitis C business if the market continues to decline.
    3. Give more clarity on the potential impact of the HIV franchise by providing guidance.
    4. Consider taking a more aggressive approach to in-licensing/business development.
    5. Consider shifting focus away from capital return and more toward reinvesting in the business via M&A and other potential growth measures.

Like most pharma stocks, Gilead has had a rough go of it in the past year, with shares now down 21.9 percent.

Barclays remains optimistic, however. The firm maintains an Outperform rating and a $90 price target for the stock.

Related Link:

  • Here's Who's Getting A Tax Cut Under The New Healthcare Proposal (You're Probably Not Included)
  • Response To GOP Healthcare Bill Ranges From Tepid Support To Outright Opposition
  • Latest Ratings for GILD

    DateFirmActionFromTo
    Nov 2020Morgan StanleyReinstatesEqual-Weight
    Oct 2020BMO CapitalMaintainsMarket Perform
    Oct 2020Cantor FitzgeraldReiteratesOverweight

    View More Analyst Ratings for GILD
    View the Latest Analyst Ratings

     

    Related Articles (GILD)

    View Comments and Join the Discussion!

    Posted-In: Analyst Color Biotech Long Ideas Health Care Politics Analyst Ratings Movers Trading Ideas Best of Benzinga

    Latest Ratings

    StockFirmActionPT
    OCXBTIGInitiates Coverage On5.0
    GCMGWilliam BlairInitiates Coverage On
    PDCraig-HallumInitiates Coverage On41.0
    CAPLWells FargoDowngrades
    MMPWells FargoDowngrades
    View the Latest Analytics Ratings
    Don't Miss Any Updates!
    News Directly in Your Inbox
    Subscribe to:
    Benzinga Premarket Activity
    Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
    Market in 5 Minutes
    Everything you need to know about the market - quick & easy.
    Fintech Focus
    A daily collection of all things fintech, interesting developments and market updates.
    Thank You

    Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com