Optimistic Outlook for Gilead Sciences Driven by Lenacapavir’s Market Potential

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 a promising outlook for Gilead Sciences. One of the primary reasons is the anticipated approval and launch of Lenacapavir for HIV PrEP, which is expected to significantly boost the company’s revenue. The ‘swapper’ model indicates that capturing even a small percentage of the current market could lead to substantial sales figures, potentially reaching $150-200 million by the end of the year and growing to $500 million or more by 2026.
Additionally, the potential for Lenacapavir to achieve a peak market penetration of 50% could result in revenues of $4-5 billion. This growth trajectory would substantially increase Gilead’s earnings per share, potentially adding $1-2 to the current $8 EPS, and providing visibility towards a $10 EPS in the future. This optimistic financial forecast, alongside the strategic market positioning of Lenacapavir, underpins Yee’s positive outlook on Gilead’s stock.

According to TipRanks, Yee is an analyst with an average return of -2.8% and a 40.90% success rate. Yee covers the Healthcare sector, focusing on stocks such as Gilead Sciences, Blueprint Medicines, and Amgen.

In another report released on June 11, Citi also maintained a Buy rating on the stock with a $125.00 price target.