Gilead Shares Up 3% As Morgan Stanley Upgrades To Overweight

Gilead Sciences Inc. shares climbed about 3% in early trade Monday and were among the top S&P 500 gainers, after Morgan Stanley upgraded the stock to overweight from equal-weight. Analysts said the recent selloff sparked by fears about competition for Gilead's key Hepatitis C drug from a new entrant to the market from AbbVie Inc. are overdone. "We believe the market's misinterpretation of the extent of the pricing risk presents an attractive entry into GILD with an improved skew in risk/reward," they wrote in a note. Morgan Stanley believes net pricing will decline by just 15%, versus the 40% the market is pricing in, and believes that Gilead can maintain a 75% market share. Gilead shares have gained 28.4% in the year so far, while the S&P 500 is up about 13%.