Gilead Sciences stock upgraded by Raymond James on strong growth outlook for new drugs By Investing.com

On Monday, Raymond James shifted its stance on Gilead Sciences (NASDAQ:) stock, raising the rating from Market Perform to Outperform. The firm also set a price target for the biopharmaceutical company at $93.00.

The upgrade was prompted by promising data from the PURPOSE-1 study of lenacapavir, a long-acting drug for HIV pre-exposure prophylaxis (PrEP), and the anticipated approval of seladelpar for primary biliary cholangitis (PBC) later this year.

The analyst from Raymond James highlighted the potential for revenue growth from both lenacapavir and seladelpar, which is expected to surpass current market expectations.

According to the firm’s analysis, these two drugs could significantly contribute to Gilead’s top-line growth over the next five years, with a combined projected annual sales of $3.7 billion by 2030.

Lenacapavir, in particular, is being eyed as a game-changer in HIV prevention due to its long-acting formulation. The drug’s recent study results have been characterized as outstanding, bolstering confidence in its market prospects. Seladelpar, on the other hand, is anticipated to receive approval with a label that is predicted to be superior to that of competing drug elafibranor.

The Raymond James analyst expressed optimism about Gilead’s future, citing the expected top-line growth driven by these two treatments. This growth is seen as a key factor in the upgraded rating and the bullish price target for Gilead Sciences, which trades on the NASDAQ under the ticker GILD.

InvestingPro Insights

In light of Raymond James’ recent upgrade of Gilead Sciences to Outperform with a price target of $93.00, current InvestingPro data and tips provide additional context for investors considering GILD stock. With a robust market capitalization of $83.09 billion and a dividend yield of 4.62%, Gilead shows a strong financial backbone. The company’s commitment to shareholder returns is evident, having raised its dividend for 9 consecutive years—an InvestingPro Tip that underscores its reliability in providing investor value.

Moreover, Gilead’s valuation suggests a strong free cash flow yield, which is a positive sign for investors looking for companies with solid financial health. Despite recent market performance, with the stock trading near its 52-week low, analysts remain optimistic about the company’s profitability, predicting it will remain profitable this year and has been over the last twelve months. This aligns well with the potential for revenue growth highlighted by Raymond James, thanks to promising drugs like lenacapavir and seladelpar.

For investors seeking more in-depth analysis and additional insights, InvestingPro offers a comprehensive suite of tips and metrics. There are 5 more InvestingPro Tips available for Gilead Sciences, which can be accessed by visiting https://www.investing.com/pro/GILD. To enhance your investment research, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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