Shares of the Foster City, CA. biopharmaceutical firm are lower by over 10% year-to-date.
However, Meacham remains bullish on Gilead with a 12-month price target of $85, suggesting a 33% upside for the shares.
"Gilead continues to look for the right deal (vs. just any deal), one that would provide an asset or platform capable of establishing a leadership position," Meacham wrote. "Management noted that it remains focused on the long-term, sustainable option rather than a short-term fix."
Jim Cramer and Real Money columnists discuss the latest from President Donald Trump and the GOP efforts to repeal and replace the Affordable Care Act. See which stocks they are discussing and get his insights or analysis with a free trial subscription to Real Money.