In a report released on September 2, Daina Graybosch from Leerink Partners maintained a Buy rating on Gilead Sciences, with a price target of $114.00.
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Daina Graybosch’s rating is based on the strategic positioning of Gilead Sciences’ HIV pre-exposure prophylaxis (PrEP) franchise, particularly focusing on Descovy’s strong performance. Despite challenges in accessing Yeztugo, Descovy has shown a significant year-over-year sales increase, likely due to mandated coverage without cost-sharing by U.S. Health and Human Services, effective in 2025. This favorable policy environment is expected to support continued growth for Descovy.
Furthermore, there is potential for a subset of Descovy users to transition to Yeztugo as access and logistics improve over time. While market access for Yeztugo may be mixed in the short term, there is optimism that it will eventually benefit from a U.S. Preventive Services Task Force Grade A recommendation. This combination of factors suggests a positive long-term outlook for Gilead’s PrEP franchise, justifying the Buy rating.
In another report released on August 22, Wells Fargo also reiterated a Buy rating on the stock with a $140.00 price target.