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.