Michael Okunewitch’s Buy rating for Gilead Sciences is based on a comprehensive analysis of the company’s financials and future prospects. The rating acknowledges the company’s consistent revenue, with total revenue for the fourth quarter of 2023 meeting consensus estimates and product sales aligning with the provided guidance. Despite a slight miss in earnings excluding Veklury, the company showed growth in its base business, particularly with a 6% increase in HIV and a 37% increase in oncology sales year over year. This underlying growth, along with the expectation of further expansion in these areas, underpins the positive outlook.
Furthermore, Okunewitch anticipates key data events that could significantly enhance the company’s portfolio and drive growth, such as the EVOKE-02 study, the PURPOSE 1 study for Lenacapavir, and pivotal Phase 2 data for anito-cel in multiple myeloma. While near-term guidance has been perceived as soft, leading to a decline in share price, the longer-term thesis remains intact. The company’s attractive dividend and improved leverage ratio post-Immunomedics acquisition position it well for future business developments. These factors, combined with the potential bottoming out of the stock price, lead to the reaffirmation of the Buy rating with a modified price target.
In another report released on February 7, BMO Capital also assigned a Buy rating to the stock with a $89.00 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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