Shares of biopharmaceutical giant Gilead Sciences (NASDAQ:GILD) have dropped nearly 20% over the past six months. In April, the company reported a quarterly loss for the first time in a while. However, recent analyst actions, pipeline developments, and chart setups suggest it may be time to consider going long on Gilead.
Promising Results in HIV
Recently, Raymond James’ Steven Seedhouse upgraded his rating for Gilead to Buy from Hold. This upgrade follows promising data from a late-stage study on lenacapavir for HIV, which achieved a 100% success rate with no HIV infection cases reported among nearly 2,134 subjects. Notably, this is the first instance of zero HIV infections reported in a late-stage study. These promising results prompted Seedhouse to set a $93 price target for GILD, indicating a potential upside of nearly 37.7%.
A Key Event to Keep an Eye on
Another potential driver for Gilead is its $4.3 billion acquisition of CymaBay Therapeutics. This deal expands GILD’s liver portfolio with CymaBay’s lead candidate, seladelpar. The drug targets the treatment of primary biliary cholangitis (PBC), including pruritus. PBC, a rare liver disease, primarily affects women over the age of 40. A New Drug Application (NDA) for seladelpar in PBC is under priority review with the FDA, with a decision expected next month.
Technical Setup
Furthermore, Gilead’s stock price has taken support at the 50-DMA this month. While the stock faces resistance at $71, a break above this level could mean a sharp upswing. The TipRanks Technical Analysis tool is also flashing a Buy signal for GILD stock on a daily timeframe.
What Is the Price Target for GILD Stock?
Overall, the Street has a Moderate Buy consensus rating on Gilead, and the average GILD price target of $78.48 implies a 16.2% potential upside in the stock.
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