Gilead Sciences (GILD 71.24; Max Buy Price 65.58; Min Sell Price 79.79) After falling steadily during the past 11 months, Gilead shares finally staged a vigorous rally last week. The reasons for the sudden spike were numerous: Gilead won a court case against Merck which could save the company billions in patent royalties; analysts raised their forecasts for 2017 EPS to $8.35 from $8.20; an analyst at Deutche Bank raised his opinion to Buy; and biotechnology stocks jumped 12% last week amid a growing sense that the Trump administration will not push drug companies to lower prices.
Based on new data and improved prospects, I have raised my Min Sell Price for Gilead Sciences to 79.79 from 71.83. I expect GILD shares to rise 10% to my new Min Sell Price before the end of 2017. Hold.