On Monday, TD Cowen sustained its Buy rating on Gilead Sciences (NASDAQ:GILD) stock, with a steadfast price target of $85.00. The firm's analyst provided insights based on a recent update to their financial model for Gilead, coinciding with the third-quarter earnings preview for the biotech sector.
Adjustments were made to several revenue projections within Gilead's portfolio, including an increase in estimates for Veklury and the total liver disease franchise. Conversely, forecasts for the total HIV franchise and cell therapy were revised downward.
The analyst also noted an uptick in projected expenses, specifically in research and development (R&D) and acquired in-process research and development (IPR&D).
Despite these modifications, the overall valuation of Gilead remained unchanged, as reflected in the stable discounted cash flow (DCF) analysis. The analyst's updated non-GAAP earnings per share (EPS) estimate for the third quarter is set at $1.75.
Gilead Sciences is known for its focus on antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including the COVID-19 treatment Veklury (remdesivir). The company's financial performance is closely watched by investors, particularly as it navigates the competitive landscape of the biopharmaceutical industry.
The updated financial model from TD Cowen comes ahead of Gilead's third-quarter earnings report, providing investors with a revised outlook on the company's potential performance. The maintained price target suggests that the firm remains optimistic about Gilead's market position and future prospects.
Investors and market watchers will be looking forward to Gilead's upcoming earnings release to see how the company's actual financial results compare with the updated estimates from analysts. Gilead's stock performance often reflects the company's ability to meet or exceed market expectations, making these earnings projections a focal point for those tracking the biotech sector.
In other recent news, Gilead Sciences has been making significant strides in both HIV prevention and oncology. The company's HIV drug, lenacapavir, demonstrated a significant 96% reduction in HIV infections in a Phase 3 trial.
Leerink Partners upgraded Gilead's stock rating from Market Perform to Outperform, following positive reactions to lenacapavir's Phase 3 results. Gilead plans to file for approval of lenacapavir by the end of 2024.
In addition, Gilead reported a 6% year-over-year rise in total product sales, driven by an 8% rise in sales for its HIV treatment, Biktarvy, and a 23% increase for the oncology drug, Trodelvy.
Leerink holds an optimistic view on the potential of anito-cel, a therapy for cancer, and sees an opportunity for Gilead to improve the market's current view of its oncology offerings with upcoming Phase 3 results.
Wells Fargo (NYSE:WFC) maintained its Overweight rating on Gilead, projecting Veklury sales around $260 million. TD Cowen also maintained its Buy rating on Gilead, forecasting approximately $1.4 billion in revenue from breast cancer indications for Gilead by 2025. These are recent developments that highlight Gilead's continued strides in both the HIV treatment and oncology sectors.
InvestingPro Insights
Gilead Sciences' financial health and market position appear robust, aligning with TD Cowen's maintained Buy rating. According to InvestingPro data, Gilead boasts a substantial market capitalization of $107.97 billion, underlining its significant presence in the biotechnology sector. The company's revenue for the last twelve months as of Q2 2024 stood at $27.8 billion, with a modest growth of 1.54%, indicating stable performance.
InvestingPro Tips highlight Gilead's strengths, noting that it has raised its dividend for 9 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by a current dividend yield of 3.55%, which may attract income-focused investors. The company's stock has shown strong momentum, with a 20.63% price total return over the past three months and a 32.72% return over six months, trading near its 52-week high.
However, investors should note that Gilead is trading at a high Price / Book multiple of 5.91, which could suggest the stock is relatively expensive compared to its book value. This metric, along with the analyst's maintained price target, may warrant careful consideration in investment decisions.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips on Gilead Sciences, providing a deeper insight into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.