Goldman Sachs analyst Salveen Richter reiterated a Hold rating on Gilead Sciences (GILD – Research Report) yesterday and set a price target of $100.00.
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Salveen Richter has given his Hold rating due to a combination of factors related to Gilead Sciences’ strategic positioning and current developments. The company’s management has reaffirmed their long-term strategy to maintain leadership in virology while expanding into oncology and inflammation, supported by a robust balance sheet and strong cash flow. However, the recent clinical hold on a key HIV treatment study due to safety concerns introduces uncertainty, with management anticipating a delay of several quarters in the program.
Additionally, while Gilead’s oncology segment shows promise, particularly with recent data from the Trodelvy trials, the broader market dynamics, including drug pricing policies and international cost disparities, present challenges. These factors, combined with the company’s current capital allocation strategy and the absence of significant patent expirations until 2033, contribute to the Hold rating, suggesting that while there are growth opportunities, potential risks and uncertainties warrant a cautious approach.
In another report released yesterday, RBC Capital also maintained a Hold rating on the stock with a $92.00 price target.
GILD’s price has also changed moderately for the past six months – from $92.340 to $110.090, which is a 19.22% increase.