Citi maintains Gilead stock Buy rating, $125 target amid HIV funding fears

Wednesday, Citi analysts reiterated their Buy rating and $125.00 price target for Gilead Sciences stock (NASDAQ:GILD). The reaffirmation follows concerns that the U.S. Department of Health and Human Services may reduce federal funding for HIV prevention efforts. Despite these potential cuts, Citi believes the impact on Gilead’s pre-exposure prophylaxis (PrEP) business will be limited.

Gilead has indicated that the PrEP market is predominantly commercial, with approximately 80% of it not relying on government funding. According to Citi analysts, this commercial focus suggests that the majority of Gilead’s PrEP revenue should remain stable even if government support diminishes. The company’s strong financial position is evident in its healthy 78.26% gross profit margin and robust dividend yield of 2.87%. For deeper insights into Gilead’s financial health and more exclusive analysis, check out the comprehensive Pro Research Report available on InvestingPro.

The company is also preparing for the launch of its next-generation PrEP drug, lenacapavir, which has demonstrated strong efficacy data and has garnered support from the HIV community. Gilead anticipates that lenacapavir will achieve significant coverage quickly after its release, expecting about 75% of covered lives within six months and approximately 90% by the end of the first year.

In light of the upcoming mid-2025 launch of lenacapavir, Citi’s analysts recommend purchasing Gilead shares on any weakness. The price target of $125.00 remains unchanged, signaling confidence in the stock’s potential despite the looming concerns over federal HIV prevention funding.

In other recent news, Gilead Sciences has reported significant advancements in its HIV and HBV treatment portfolio, showcasing promising data at the 2025 Conference on Retroviruses and Opportunistic Infections. The company’s Phase 3 study on Biktarvy demonstrated high rates of viral suppression in HIV and HBV co-infection cases. Additionally, Gilead’s investigational combination of lenacapavir with broadly neutralizing antibodies achieved positive results in a Phase 2 study, maintaining virologic suppression in 96% of participants. Meanwhile, BMO Capital Markets has maintained an Outperform rating for Gilead Sciences with a $115 price target, despite potential funding cuts for domestic HIV prevention efforts by the Department of Health and Human Services. Bernstein analysts also reiterated an Outperform rating with a $120 price target, citing high expectations for the company’s preventative HIV treatment, Len for PrEP. In executive news, Gilead announced the departure of Sandra Patterson, its Senior Vice President, Corporate Controller, and Chief Accounting Officer, with Diane E. Wilfong stepping in as the interim replacement. Investors are closely watching these developments, as potential policy changes and new treatment advancements could have significant implications for the company.

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