Gilead defended at RBC, but MRK Hep C data might look good this week, some headline risk
RBC's call on GILD is the stock is very cheap after the pullback, now down to a 11-12x P/E on sellside consensus $6.50 earnings per share in 2015E. But we believe that there is a strong upward bias to estimates this year and that 2015 might come in at least as good as buyside consensus EPS of $8/shr, and they see higher as theoretically possible. This multiple is the lowest the stock has seen since 2009-10 when healthcare was completely out of favor with investors and when bears thought GILD had a HIV patent cliff and that revenues were going to zero by 2018. Competitor Merck (MRK) may have good GT1a data w/o RBV for all-oral HCV combo on Thursday, might come to market by YE15 or 2016.