Analyst Michael Yee from Jefferies maintained a Buy rating on Gilead Sciences (GILD – Research Report) and keeping the price target at $130.00.
Michael Yee has given his Buy rating due to a combination of factors that suggest Gilead Sciences remains a strong investment despite recent challenges. Yee acknowledges that Gilead’s stock experienced a decline following news of potential cuts to the CDC’s HIV prevention budget, which could indirectly affect the company’s revenue. However, he emphasizes that these cuts are related to prevention services rather than direct drug reimbursements, indicating a limited impact on Gilead’s core business.
Furthermore, Yee points out that while there is concern over potential Medicaid budget cuts, Gilead’s exposure to Medicaid is manageable. Even with a hypothetical 10% cut in Medicaid spending, the impact on Gilead’s earnings per share would be moderate and within a manageable range. Additionally, Yee highlights upcoming catalysts, such as the approval and launch of the LEN Capsid PrEP, which could drive positive momentum for the stock if it receives strong commercial support. Overall, Yee’s analysis suggests that Gilead’s long-term prospects remain robust, justifying the Buy rating.
Yee covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Vertex Pharmaceuticals, and Amgen. According to TipRanks, Yee has an average return of -3.0% and a 41.02% success rate on recommended stocks.
In another report released on March 20, Bank of America Securities also reiterated a Buy rating on the stock with a $126.00 price target.
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