Gilead Sciences (GILD – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Evan Seigerman from BMO Capital maintained a Buy rating on the stock and has a $120.00 price target.
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Evan Seigerman’s rating is based on several key factors that suggest a positive outlook for Gilead Sciences. The anticipated decision in the Kennedy vs Braidwood case is expected to favor the Department of Health and Human Services, which would be beneficial for Gilead. This outcome would likely ensure continued coverage of HIV PrEP medications, such as Gilead’s Yeztugo, under private health insurance plans and Medicare, supporting the company’s revenue streams.
Additionally, Seigerman highlights the upcoming launch of Yeztugo, which is expected to perform well due to its clean label, differentiated profile, and strong clinical data. These attributes are likely to enhance patient compliance and persistence compared to existing oral options. Furthermore, Gilead’s oncology franchise, driven by products like Trodelvy and Cell, is seen as a significant growth area. Despite trading at a discount compared to its large-cap peers, the potential derisking of its oncology segment could further bolster Gilead’s market position.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $110.00 price target.