Company

Bank

Analyst

Coverage

Opinion

Wk chg

7/26 cls

Gilead Sciences Inc. (NASDAQ:GILD)

Baird

Brian Skorney

Downgrade

Neutral (from outperform)

4%

$62.57

In his downgrade, Skorney said "now that Gilead's market cap is knocking on $100 billion, it's tough for us to find what isn't already priced in." Last week, the biotech reported 2Q13 EPS that met the Street's estimate and revenues that beat the consensus estimate. Skorney raised his target to $65 from $55 based on a discounted cash flow model going out to 2022 (see "EPS Watch," A19).

Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD)

Cantor Fitzgerald

Irina Rivkind

Upgrade

Hold (from sell)

11%

$12.49

Janney Montgomery Scott

Jim Molloy

Upgrade

Buy (from neutral)

Rivkind also raised her target to $10 from $7 after Ironwood reported revenues of $9.7M, beating her estimate of $3.8M and the consensus estimate of $8.2M. She said the revenue number was driven by a large API order to partner Almirall S.A. (Madrid:ALM) plus unexpected milestones for the U.K. and German launches of Constella linaclotide for irritable bowel syndrome with constipation (IBS-C). Almirall has rights from Ironwood in Europe and the Commonwealth of Independent States (CIS). In the U.S., the drug is marketed as Linzess for IBS-C or chronic idiopathic constipation (CIC) in adults and is partnered with Forest Laboratories Inc. (NYSE:FRX). Rivkind increased her 2013 revenue estimate to $28.2M from $20.2M.