In a report released yesterday, Evan Seigerman from BMO Capital maintained a Buy rating on Gilead Sciences (GILD – Research Report), with a price target of $115.00.
Evan Seigerman has given his Buy rating due to a combination of factors that suggest Gilead Sciences has a promising outlook despite potential challenges. The anticipated cuts in HIV prevention funding by the HHS are expected to have only a modest impact on Gilead’s PrEP franchise. This is because the company’s new long-acting PrEP medication, lenacapavir, is set to launch in 2025, which could offset any negative effects from reduced government spending.
Furthermore, Seigerman’s confidence in Gilead is bolstered by the company’s strong base in the HIV market and the positive trajectory of its oncology division, particularly with products like Trodelvy and Cell. Although Gilead currently trades at a discount compared to its large-cap peers, the ongoing development and potential success of its oncology franchise are seen as key growth drivers. These factors collectively underpin the Buy rating, suggesting that Gilead is well-positioned for future growth.
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.