Bank of America Securities analyst Tim Anderson has maintained their bullish stance on GILD stock, giving a Buy rating on April 25.
Tim Anderson’s rating is based on Gilead Sciences’ strong growth outlook compared to its peers, which is considered above average and durable. The company’s position in the HIV/AIDS treatment market is a significant factor, as this category of medicines is typically left untouched by U.S. payers, despite potential government budget cuts. Anderson notes that while there are concerns about funding cuts to programs like Medicaid and the CDC, the impact on HIV/AIDS drugs is expected to be minimal, maintaining their ‘protected class’ status.
Furthermore, the introduction of generics for market-leading integrase inhibitors is not anticipated until the late 2020s, suggesting stability in Gilead’s market position in the near term. Additionally, the potential approval of lenacapavir for HIV prevention, with its innovative dosing schedule, is seen as a ‘game-changer’ that could enhance patient adherence and expand access through various channels. These factors collectively support the Buy rating with a price objective of $126.
In another report released on April 25, Citi also maintained a Buy rating on the stock with a $125.00 price target.