NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) - Get Report are down by 9% to $80.58 on heavy volume in early-afternoon trading on Tuesday, as the company reported a lower than expected 2016 sales forecast on Monday.
So far today, 33.32 million shares have traded hands, compared to the daily average of 9.24 million.
Although the Foster City, CA-based bio-pharmaceutical company reported an earnings beat, its second quarter sales dropped by 22% year-over-year. The company also lowered its full-year sales outlook to between $29.5 billion and $30.5 billion, from a previous range of $30 billion to $31 billion, based on weaker than expected sales for its key Hepatitis C drugs.
In response, RBC Capital cut the company's price target to $105 from $120 this morning, but kept an "outperform" rating on the stock.
The firm does not expect the stock to go down "too much" and says it has "plenty of capital to deploy to find growth and pipeline in time."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate GILEAD SCIENCES INC as a Buy with a ratings score of B. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: GILD