Gilead Sciences (GILD – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst on February 28. Analyst Michael Yee from Jefferies maintained a Buy rating on the stock and has a $130.00 price target.
Michael Yee has given his Buy rating due to a combination of factors that highlight Gilead Sciences’ promising future. The company is experiencing strong momentum, particularly with its upcoming launch of a long-acting HIV prevention drug, which is expected to significantly boost revenues and earnings through 2030. This new product could capture a substantial market, potentially contributing $4-8 billion to the total addressable market, and enhance earnings per share, making the current valuation attractive.
Additionally, Gilead is well-prepared for the launch, with positive discussions with the FDA and no regulatory hurdles anticipated. The company’s diverse portfolio, including advancements in HIV treatments, oncology, and inflammation, further supports the positive outlook. These factors, combined with potential margin expansions and high-quality earnings, position Gilead for continued growth, justifying the Buy rating and a raised price target of $130.
In another report released on February 23, Morgan Stanley also reiterated a Buy rating on the stock with a $123.00 price target.