DoctoRx's  Instablog

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Over 30 years of investing in individual stocks. Extensive business experience with small to mid-size companies, including as CEO. Many hundreds of blog posts on financial and economic matters since 2008. Focus on value with catalysts for upside price action. Background as a physician and... More
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  • Gilead Sciences Price Target Update 2 comments
    Jul 29, 2014 10:39 AM | about stocks: GILD

    A brief update on a short-term price target. On its web site, Gilead Sciences (NASDAQ:GILD) publishes analyst's EPS estimates for 2014, 2015 and 2016. Consensus estimates are as follows:

    Analyst Forecasts - EPS
      Last Month Revisions
    Fiscal Period   Mean High Low Median # of Estimates #Up #Down Mean % Change
    Annual Dec 16 10.15 13.70 7.55 10.00 23 19 1 11.60
    Annual Dec 15 9.07 12.02 7.00 9.23 26 21 0 15.56
    Annual Dec 14 7.67 9.16 5.00 7.98 25 22 0 21.52

    My sense is that given low and dropping interest rates available to owners of capital, an implied 10% earnings yield two years from now will be viewed as attractive, given Gilead's long-term growth potential. Thus I think that $100 is a reasonable short-term price target. Investors should be aware, though, that I do not leverage positions and do not own or intend to own any weekly or 1-2 month options on GILD. Thus I actually have bought GILD shares and long-term GILD naked calls this week.

    Disclosure: The author is long GILD.

    Additional disclosure: Not investment advice. I am not an investment adviser.

    Stocks: GILD
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Comments (2)
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  • somedata1
    , contributor
    Comments (2063) | Send Message
    I'll take the high numbers and hold it forever!
    29 Jul 2014, 02:01 PM Reply Like
  • DoctoRx
    , contributor
    Comments (8123) | Send Message
    Author’s reply » Well said!
    29 Jul 2014, 11:41 PM Reply Like
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