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On Wednesday, TD Cowen increased its price target on Gilead Sciences (NASDAQ:GILD) shares to $100 from the previous $95, while maintaining a Buy rating on the stock. The biotech giant, currently trading near its 52-week high at $102.53, has shown remarkable strength with its shares up over 34% in the past year. The adjustment follows Gilead’s announcement of its fourth-quarter earnings, which surpassed expectations with a strong performance in both revenue and earnings.
Gilead’s financial results showed a 6% rise in revenue compared to consensus estimates and a 12% increase in earnings. With a robust gross profit margin of 78% and strong cash flows, the $127.82 billion market cap company’s success was attributed to its HIV and liver disease segments, as well as the cancer drug Trodelvy. However, these gains were somewhat tempered by lower-than-expected results from its cell therapy and Veklury products, coupled with increased operating expenses. According to InvestingPro, Gilead maintains a "GREAT" financial health score, with 8 additional exclusive insights available to subscribers.
Looking ahead, Gilead provided sales guidance for the fiscal year 2025, which closely aligned with consensus forecasts. The company, which has increased its dividend for 10 consecutive years and currently offers a 3.2% yield, anticipates that changes due to Part D reform will be offset, with HIV sales expected to remain stable year-over-year. The upcoming launch of Lena and the PrEP treatment this summer is poised to be a focal point for Gilead.
The analyst from TD Cowen expressed confidence in Gilead’s ability to reset its HIV segment by 2025 and projected a return to growth in 2026. This optimistic outlook is based on the company’s recent performance and strategic initiatives, setting the stage for future developments. For a comprehensive analysis of Gilead’s valuation and growth prospects, access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Gilead Sciences has been the focus of multiple analysts’ reports, with RBC Capital, BMO Capital, Piper Sandler, and Oppenheimer all adjusting their price targets for the biopharmaceutical company. RBC Capital raised its target from $84 to $90, citing Gilead’s potential growth drivers post-2025 and its strong performance in 2024. BMO Capital increased its price target to $115, highlighting Gilead’s robust momentum and growth prospects in 2025. Piper Sandler adjusted its target to $110, following Gilead’s robust fiscal year 2024 performance and encouraging guidance for fiscal year 2025. Oppenheimer maintained its $115 target, following a strong fourth-quarter performance that surpassed consensus estimates.
Additionally, Gilead announced a 2.6% increase in its quarterly cash dividend, reflecting its ongoing commitment to provide value to its shareholders and its confidence in the company’s financial strength. These are recent developments in Gilead’s financial trajectory, with each update representing a unique perspective on the company’s performance and potential. However, it’s important to note that these reports are based on analysts’ assessments and projections, not the company’s own predictions. The company’s future performance will be shaped by various factors, including the success of its product pipeline and the broader market conditions.
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