Shares of biopharmaceutical giant Gilead Sciences (NASDAQ:GILD) have dropped nearly 20% over the past six months. In April, the company reported a quarterly loss for the first time in a while. However, recent analyst actions, pipeline developments, and chart setups suggest it may be time to consider going long on Gilead.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Promising Results in HIV
Recently, Raymond James’ Steven Seedhouse upgraded his rating for Gilead to Buy from Hold. This upgrade follows promising data from a late-stage study on lenacapavir for HIV, which achieved a 100% success rate with no HIV infection cases reported among nearly 2,134 subjects. Notably, this is the first instance of zero HIV infections reported in a late-stage study. These promising results prompted Seedhouse to set a $93 price target for GILD, indicating a potential upside of nearly 37.7%.
A Key Event to Keep an Eye on
Another potential driver for Gilead is its $4.3 billion acquisition of CymaBay Therapeutics. This deal expands GILD’s liver portfolio with CymaBay’s lead candidate, seladelpar. The drug targets the treatment of primary biliary cholangitis (PBC), including pruritus. PBC, a rare liver disease, primarily affects women over the age of 40. A New Drug Application (NDA) for seladelpar in PBC is under priority review with the FDA, with a decision expected next month.
Technical Setup
Furthermore, Gilead’s stock price has taken support at the 50-DMA this month. While the stock faces resistance at $71, a break above this level could mean a sharp upswing. The TipRanks Technical Analysis tool is also flashing a Buy signal for GILD stock on a daily timeframe.
What Is the Price Target for GILD Stock?
Overall, the Street has a Moderate Buy consensus rating on Gilead, and the average GILD price target of $78.48 implies a 16.2% potential upside in the stock.
Read full Disclosure