Gilead Sciences: Robust HIV Business and Oncology Growth Potential Justify Buy Rating

Gilead Sciences (GILD – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Chris Schott from J.P. Morgan maintained a Buy rating on the stock and has a $95.00 price target.

Chris Schott’s rating is based on the robust and durable positioning of Gilead Sciences’ HIV business, which is undergirded by a lack of imminent patent expirations and the continuous market share gains of Biktarvy. Schott sees the potential of lenacapavir as still underappreciated, suggesting an upside as its opportunities expand. In addition, he views the oncology portfolio, though still evolving, as a significant growth driver, with the CART franchise gaining traction and Trodelvy expected to broaden into more indications. The substantial cash flow generation by Gilead also presents opportunities for strategic acquisitions and enhanced shareholder returns, further supporting the optimistic outlook.
Furthermore, Schott has given his Buy rating due to a combination of factors including near-term financial performance expectations and long-term strategic positioning. While he anticipates a messy short-term update due to recent acquisitions, he believes the market has not fully recognized the impact these could have on earnings per share. Looking ahead, he expects upcoming clinical data readouts, particularly from the PURPOSE-1 trial for lenacapavir in PrEP, to shift focus and potentially unlock significant value. The anticipation of several clinical catalysts in HIV treatment throughout the year reinforces the belief that Gilead Sciences’ stock has additional room for growth, justifying the Buy rating.

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Gilead Sciences (GILD) Company Description:

Founded in 1987, California-based Gilead Sciences, Inc. is a biopharmaceutical company, which focuses on the research, development, and commercialization of antiviral drugs used in the treatment of diseases like human immunodeficiency virus (HIV), hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi. It offers its products under brands including Harvoni, Genvoya, Epclusa, Truvada, Atripla, Descovy, Stribild, Viread, Odefsey, Complera/Eviplera, Sovaldi, and Vosevi.