The brokerage firm also slashed its GILD price target
Goldman Sachs downgraded Gilead Sciences, Inc. (NASDAQ:GILD) to "sell" from "neutral," and slashed its price target by $10 to $60 -- a discount to last Friday's close at $66.89. The brokerage firm said it sees short-term deceleration in the drugmaker's top-line growth, and said it will likely take time for GILD's new CEO to rebuild the company's pipeline.
In reaction, GILD stock is down 2.4% ahead of the bell. It's been a choppy stretch for the shares since skimming a five-year low near the round $60 mark in late December. While the equity rallied all the way back up to $70 by Feb. 1, it's since been stuck beneath a trendline connecting lower highs, though the $62 level has served as a steady floor in recent months.
Sentiment around Wall Street remains upbeat. While the majority of the 20 analysts in coverage still maintain a "strong buy" rating on GILD shares, a slim 1% of its float is dedicated to short interest.
Meanwhile, in the options pits, the June 65 put is home to peak front-month open interest of almost 10,400 contracts. Data from the major options exchanges confirms significant sell-to-open activity here, meaning put writers expect $65 to serve as a short-term floor for Gilead Sciences stock through June options expiration.