On Monday, Oppenheimer has adjusted its outlook on Gilead Sciences (NASDAQ:GILD), with a revised price target on the company's stock. The firm has lowered the target to $105 from the previous $115 while maintaining an Outperform rating. This change follows Gilead Sciences' recent fourth quarter earnings report and investor update, which were presented last Monday.
Gilead Sciences, traded on NASDAQ under the ticker NASDAQ:GILD, reported fourth quarter 2023 revenues and earnings that did not meet the expectations set by Oppenheimer. Particularly, the sales of HIV treatments were highlighted as underperforming. Additionally, Gilead faced setbacks with its drug pipeline, including the Phase 3 OAKTREE trial for oral obeldesivir, which failed to meet its primary endpoint, and the cessation of further development of the oncology asset magrolimab in hematologic cancers.
In response to these developments, Oppenheimer has updated its financial model for Gilead Sciences. The revisions include a slight decrease in projected HIV sales and the removal of magrolimab for hematologic indications. These changes have influenced the decision to lower the price target.
Despite these adjustments, the firm remains optimistic about Gilead's prospects for the year 2024. Based on the company's fiscal year 2024 guidance and previous discussions with management regarding operational expenditure discipline, Oppenheimer anticipates potential for revenue and earnings growth. The firm's stance is buoyed by the expectation that the impact of COVID-19 treatment Veklury on the profit and loss statement will diminish, allowing for a stronger financial performance in the upcoming year.
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