Shares of drugmaker Gilead Sciences, Inc. (NASDAQ:GILD) are up 1.5% in pre-market trading, after the stock received an upgrade to "top pick" from "outperform" out of RBC. The brokerage firm cited new leadership as one reason for its bullish view on GILD stock. Overall, analysts have been extremely optimistic toward the security, with 14 of 19 covering firms sporting a "strong buy" rating, while just five carry a tepid "hold," and the stock's average 12-month price target stands at $80.19, compared to Friday's close of $66.92.
GILD has had a lackluster year on the charts, but despite last week running into resistance at the 200-day moving average, the stock remains 6% higher-year-to-date. We'll see if earnings, due out after the close tomorrow July 30, can spark some more upside for the shares.
However, the security has averaged a modest post-earnings move of just 2.7% during the past two years. Ahead of the event, call buying has remained popular at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), with the 10-day call/put volume ratio at these exchanges standing at 2.45. In the front-month August series, peak call open interest sits at the 70 strike.