Maxim Group analyst Michael Okunewitch has maintained their neutral stance on GILD stock, giving a Hold rating on October 31.
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Michael Okunewitch has given his Hold rating due to a combination of factors that reflect Gilead Sciences’ current market position and growth prospects. The company’s recent financial performance showed sales slightly below expectations, although earnings per share exceeded forecasts due to one-time revenue recognition. Despite strong performance in the HIV segment, particularly with Biktarvy and the new PrEP drug Yeztugo, Gilead’s growth outside of HIV remains modest.
In the oncology sector, Gilead faces increased competition, and while there is potential for future growth, it is not yet significant enough to drive substantial top-line growth. The liver disease segment has shown some recovery, but it remains a smaller part of the overall business. Gilead’s shares are considered fairly valued, trading at a price-to-earnings ratio comparable to its peers, and the company’s heavy reliance on its HIV portfolio poses challenges for diversification. As a result, Okunewitch maintains a Hold rating, reflecting a balanced view of the company’s strengths and limitations.
In another report released on October 31, UBS also reiterated a Hold rating on the stock with a $112.00 price target.