Gilead initiated with a Reduce at HSBC

HSBC initiated coverage of Gilead with a Reduce rating and $71 price target. The analyst initiated coverage of 11 U.S. biopharma and healthcare companies and sees six names that are differentiated with drivers that will create long-term value. The risk/rewards look attractive for those companies with revenue opportunities and low exposure to lower R&D productivity, loss of exclusivity and regulation, the analyst tells investors in a research note. HSBC believes the biotech sector in general will get a “relative lift from favorable” Inflation Reduction Act dynamics, while segments like animal health are “completely unaffected.”