Gilead Sciences: PrEP-Led Growth, Easing HIV Overhangs, and Pipeline Upside Support Buy Rating and 2027 Re-Rating Target

UBS analyst Michael Yee maintained a Buy rating on Gilead Sciences yesterday and set a price target of $145.00.

Michael Yee has given his Buy rating due to a combination of factors that, in his view, position Gilead for strong earnings and multiple expansion. He expects robust growth from Yeztugo in HIV pre-exposure prophylaxis (PrEP), which should lift both revenues and profits while prior investments keep operating expense growth moderate. He highlights a supportive reimbursement landscape, including favorable pricing arrangements for older HIV medicines and continued payer backing for PrEP with minimal out-of-pocket costs for patients, which underpins confidence in sustained uptake. Yee’s channel checks with physicians and patients suggest rising awareness and adoption of PrEP, benefiting both existing products like Descovy and the Yeztugo rollout, and he believes current Street models underappreciate the recurring nature of injection-based therapies.
At the same time, he argues that many of the key overhangs that kept Gilead’s valuation below peers—such as fears over HIV pricing pressure, policy risk, and patent uncertainty—have largely eased, reducing downside risk to the story. With no significant loss of exclusivity expected until well into the next decade, he sees room for the stock to re-rate toward a peer-like earnings multiple by 2027. He also points to the emerging pipeline of long-acting HIV treatment regimens as a potential second growth driver, noting that forthcoming Phase II/III readouts in 2026–2027 could further expand the company’s valuation if successful. Based on his earnings forecasts and an assumed price-to-earnings ratio in line with faster-growing peers, Yee derives a 2027 price target of $145, which supports his Buy recommendation.

In another report released yesterday, Citi also maintained a Buy rating on the stock with a $135.00 price target.

Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GILD in relation to earlier this year.