Gilead Sciences price target raised to $95 from $92 at RBC Capital

Published 11/06/2025, 14:58
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RBC Capital raised its price target on Gilead Sciences (NASDAQ:GILD) to $95 from $92 on Wednesday, while maintaining a Sector Perform rating on the stock. Currently trading at $110.31, Gilead has demonstrated remarkable strength with a 76% return over the past year. The adjustment follows the firm’s analysis of market opportunities for Gilead’s injectable PrEP medication lenacapavir. According to InvestingPro data, Gilead maintains a "GREAT" financial health score, supported by strong cash flows and consistent dividend growth.

The research firm conducted a follow-up to its 2022 patient survey to assess changing perceptions of lenacapavir among high-risk individuals both using and not using PrEP. RBC noted several positive factors that could drive adoption, including high clinician engagement, lower-than-expected oral medication adherence, and willingness to switch among current PrEP users. With annual revenue of $28.73 billion and a robust gross profit margin of 78%, Gilead demonstrates strong commercial execution in its existing product portfolio.

RBC’s analysis revealed potential challenges to market expansion, with most individuals not currently on PrEP reporting they don’t view themselves as sufficiently high-risk, don’t want to take medications, or don’t see the six-month injectable as meaningfully advantageous compared to daily oral options. The survey found fewer than 15% of non-PrEP users plan to proactively request lenacapavir.

The firm increased its medium-term estimates for lenacapavir to account for more switching, particularly from generic Truvada. Despite the price target increase, RBC remains below consensus on peak sales potential, suggesting Wall Street may be "overly optimistic on PrEP overall market growth."

RBC acknowledged Gilead’s positive attributes, including its "healthy HIV franchise" and anito-cel, noting the company’s multiple is "not out-of-line versus peers." The firm indicated that based on what it considers realistic estimates for PrEP and HIV life cycle, it remains difficult to justify a fundamental valuation well above $100 per share. Trading at a P/E ratio of 23.3, Gilead currently appears slightly overvalued according to InvestingPro Fair Value analysis. Investors seeking deeper insights can access comprehensive valuation metrics and 12 additional ProTips through the detailed Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Gilead Sciences has been the focus of several key developments. Morgan Stanley (NYSE:MS) analysts have reiterated their Overweight rating for Gilead Sciences, highlighting the potential impact of lenacapavir (LEN) for HIV pre-exposure prophylaxis (PrEP), which is expected to gain FDA approval by June 2025. The analysts project significant sales growth for LEN, with estimates reaching $184 million in 2025 and $760 million in 2026. Citi analysts also reaffirmed a Buy rating for Gilead Sciences, following promising data from the ASCENT-04 trial that indicated Trodelvy’s effectiveness in treating triple-negative breast cancer. The trial demonstrated a 35% reduction in disease progression risk when Trodelvy was combined with Keytruda.

Additionally, Gilead Sciences announced successful results from the ASCENT-03 trial for Trodelvy, showing improved progression-free survival in metastatic triple-negative breast cancer patients. The company plans to pursue full FDA approval based on these findings, with a decision expected in 2026. In corporate governance, Gilead held its 2025 annual stockholders meeting, where nine directors were re-elected, and Ernst & Young LLP was ratified as the accounting firm for the fiscal year. However, stockholders did not approve proposals related to executive compensation and corporate policies. Meanwhile, RBC Capital maintained a Sector Perform rating for Gilead Sciences, noting potential access hurdles for lenacapavir PrEP but anticipating market traction.

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