Analyst says Gilead is a buy after yesterday's drop

|About: Gilead Sciences, Inc. (GILD)|By:, SA News Editor

RBC's Michael Yee believes that Gilead's (GILD +0.6%) 4% drop yesterday in response to Merck's (MRK +0.4%) buy of Idenix (IDIX -0.3%) creates a nice buying opportunity. He says Sovaldi sales could hit $12B in 2015 driving EPS to $8 - 10 meaning the firm would likely sport a modest earnings multiple of only 8 - 10.

Mr. Yee states that the consensus view is that the U.S. HCV market will begin to deteriorate by 2016 but other long-term markets (ex-U.S.) are sustainable.