Jefferies analyst Michael Yee maintained a Buy rating on Gilead Sciences (GILD – Research Report) yesterday and set a price target of $130.00.
Michael Yee has given his Buy rating due to a combination of factors surrounding Gilead Sciences. Despite recent news about potential budget cuts to the CDC’s domestic HIV prevention programs, Yee believes that these cuts do not directly affect the reimbursement for HIV drugs or the commercial insurance coverage for PrEP, which constitutes a significant portion of Gilead’s market.
Yee also notes that while there is some headline risk associated with these budget cuts, the impact on Gilead’s financials is minimal since the cuts are not related to drug payments. Furthermore, the upcoming launch of Gilead’s capsid inhibitor for PrEP is expected to proceed without major disruptions. Overall, Yee’s assessment suggests that the core business and revenue streams of Gilead remain strong, justifying his Buy rating.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $130.00 price target.
GILD’s price has also changed moderately for the past six months – from $83.890 to $110.230, which is a 31.40% increase.