Needham analyst Joseph Stringer has maintained their neutral stance on GILD stock, giving a Hold rating on June 10.
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Joseph Stringer has given his Hold rating due to a combination of factors related to Gilead Sciences’ recent developments and market positioning. The approval of Yeztugo for HIV PrEP by the FDA is a significant milestone, but it was anticipated and did not present any surprises in terms of its label or timing. The pricing strategy for Yeztugo, set at a premium compared to existing PrEP drugs, suggests potential for revenue growth, yet it also poses challenges in terms of market competition and adoption.
Stringer notes that the success of Yeztugo in boosting Gilead’s topline growth depends heavily on the company’s ability to convert current PrEP users to this new treatment and to capture a share of the untapped market of potential users. While the projected revenue for Yeztugo is slightly above consensus estimates, the execution risks associated with these strategic goals contribute to the Hold rating, reflecting a cautious optimism about the company’s future performance in this segment.
In another report released on June 10, RBC Capital also maintained a Hold rating on the stock with a $92.00 price target.