Readers of this space know that biotech and pharmaceutical companies are not the preferred investment candidates, but there exceptions to the rule, and Gilead Sciences is one.

Gilead Sciences, Inc. (Nasdaq: GILD) is a biopharmaceutical company that concentrates on the research, development, and marketing of anti-infective medications with a primary focus on treatments for HIV.

In general, analysts see Gilead registering 25-30% revenue growth in FY 2008, following solid, double-digit gains in FY 2007. Further, Gilead should also register market share gains for HIV drugs, offsetting likely royalty revenue declines for Tamiflu, in the immediate years ahead.

Meanwhile, expenses remain above-average, but still acceptable for a biopharmaceutical company, and GILD's fundamentals remain among the strongest in the biotech sector. The Reuters FY 2008/FY 2009 EPS consensus estimates for are $1.92 to $2.22.

The risks? Analysts are keeping an eye on Gilead's pipeline development and roll-out timetable. Further, a slowdown in GILD's HIV product sales would also hurt the company's results.

The First Call mean rating for GILD is: Buy [32 firms]. Mean 2008 target: $55 [high: $60, low: $47].

Stock Analysis: Gilead Sciences is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from GILD's shares. Sell/Stop Loss if you were to purchase shares in this company: $34.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.