Jefferies analyst Michael Yee maintained a Buy rating on Gilead Sciences (GILD – Research Report) today and set a price target of $130.00.
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Michael Yee has given his Buy rating due to a combination of factors that suggest strong potential for Gilead Sciences’ stock. A key element is the upcoming potential approval of the drug Lenacapavir (Len) for PrEP, which has generated significant interest among patients. According to a survey conducted by Jefferies, a substantial majority of current PrEP users are eager to switch to Len, and many non-users are considering starting PrEP with this new option. This indicates a promising market expansion opportunity for Gilead.
Additionally, despite recent stock pullbacks due to pricing and Medicaid concerns, Yee sees this as a buying opportunity. The stock is trading at a favorable valuation, and the anticipated approval and launch of Len could drive significant revenue growth. With the market for PrEP drugs expanding and the potential for Len to capture a significant share, Yee projects a strong financial outlook for Gilead, with a potential price target increase as earnings grow. This combination of factors underpins the Buy rating for Gilead Sciences.
In another report released on May 14, Bank of America Securities also maintained a Buy rating on the stock with a $126.00 price target.