Emily Field, an analyst from Barclays, maintained the Hold rating on Gilead Sciences (GILD – Research Report). The associated price target is $76.00.
Emily Field has given his Hold rating due to a combination of factors affecting Gilead Sciences’ growth and market potential. The company’s recent earnings beat was driven primarily by the COVID-19 treatment Veklury and one-time events such as European HIV price adjustments and hepatitis C drug purchases, which are not sustainable indicators of long-term performance. Moreover, the projected stagnation in HIV drug growth by 2025, a significant area of revenue for Gilead, due to changes in Medicare Part D plans, places added pressure on the success of their cell therapy and seladelpar launch to drive future growth.
The reaffirmation of cell therapy growth in the second half of the year offers some optimism, yet competition from other pharmaceutical companies poses a real threat. The anticipated contribution of seladelpar could be positive, but even with this, the expected earnings per share growth in 2025 is not particularly compelling. The reduction of the price target from $80 to $76 reflects lower oncology projections and revaluations of the pipeline after the discontinuation of certain research programs. While there may be short-term opportunities for the stock if competitors’ studies underperform, the overall path to value appreciation appears fraught with challenges, including potential headwinds from Trodelvy competition, which necessitates a cautious outlook.
In another report released on April 26, Morgan Stanley also maintained a Hold rating on the stock with a $78.00 price target.
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Gilead Sciences (GILD) Company Description:
Founded in 1987, California-based Gilead Sciences, Inc. is a biopharmaceutical company, which focuses on the research, development, and commercialization of antiviral drugs used in the treatment of diseases like human immunodeficiency virus (HIV), hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi. It offers its products under brands including Harvoni, Genvoya, Epclusa, Truvada, Atripla, Descovy, Stribild, Viread, Odefsey, Complera/Eviplera, Sovaldi, and Vosevi.
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