Analyst Courtney Breen of Bernstein maintained a Buy rating on Gilead Sciences, retaining the price target of $120.00.
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Courtney Breen has given his Buy rating due to a combination of factors related to the promising prospects of Gilead Sciences’ new drug, Yeztugo. This drug, also known as Lenacapavir, has recently been approved by the FDA for use as a monotherapy in the prevention of HIV, which is expected to significantly drive Gilead’s growth. The innovation in Yeztugo’s dosing paradigm, which allows for a six-monthly administration compared to daily or bi-monthly alternatives, is anticipated to enhance patient adherence and expand the PrEP market.
Despite concerns about the drug’s pricing, Breen highlights that the perceived financial burden may be mitigated by insurance coverage, potentially resulting in a $0 copay for many patients. Gilead’s strategic efforts to address logistical challenges and secure insurance formulary adoption are expected to facilitate a successful launch. The company’s guidance suggests significant coverage within the first year, and Breen’s analysis projects substantial revenue growth from Yeztugo by 2030. These factors, combined with the drug’s clinical differentiation and market receptivity, underpin the positive outlook for Gilead’s stock.
According to TipRanks, Breen is a 2-star analyst with an average return of 3.3% and a 61.90% success rate. Breen covers the Healthcare sector, focusing on stocks such as Eli Lilly & Co, Merck & Company, and Moderna.
In another report released on June 30, Citi also maintained a Buy rating on the stock with a $125.00 price target.