Gilead stock price target raised to $115 at BMO Capital

On Wednesday, BMO Capital Markets expressed confidence in Gilead Sciences (NASDAQ:GILD), with analyst Evan David Seigerman increasing the company’s price target to $115 from the previous $110, while maintaining an Outperform rating on the stock. The stock is currently trading near its 52-week high, with InvestingPro data showing a remarkable 34% price return over the past six months. Seigerman’s optimism is fueled by Gilead’s solid performance at the end of 2024 and its strong prospects for 2025, particularly with the anticipated launch of the long-acting PrEP medication.

Gilead Sciences has demonstrated robust momentum, with approximately 16% year-over-year growth in the PrEP market, which suggests the company will continue to dominate this sector. The company’s overall revenue growth stands at 6.04%, supported by strong financial health metrics according to InvestingPro’s analysis. Despite potential challenges such as Part D reform, foreign exchange fluctuations, and declining Veklury sales, Seigerman believes Gilead’s growth narrative remains intact and achievable.

The company’s recent successes include the outperformance of Trodelvy, which saw a 24% increase in year-over-year sales, and the introduction of Livdelzi. These advancements contribute to Gilead’s strong market position, with the company maintaining a solid 3.2% dividend yield and a 10-year track record of consecutive dividend increases. Seigerman notes that in the BioPharma industry, Gilead’s top-line growth of 5–6% coupled with a rising dividend and a reasonable price-to-earnings (P/E) ratio support the Outperform rating.

The analyst’s report reflects a broader market sentiment that Gilead Sciences is well-positioned to sustain its growth trajectory and continue its leadership in the BioPharma sector. With a market capitalization of $128.7 billion and a comprehensive financial analysis available through InvestingPro’s detailed research reports, investors are likely to monitor the company’s progress closely, especially with the launch of new products on the horizon.

In other recent news, Gilead Sciences has been making significant strides in the financial sector. The company’s fiscal year 2024 total product revenues reached $28.6 billion, surpassing both the consensus estimate and previous guidance. Gilead’s non-GAAP earnings per share (EPS) for FY24 also exceeded expectations, reaching $4.62. Analyst Joseph Catanzaro from Piper Sandler responded to these developments by raising the price target on Gilead Sciences stock to $110, maintaining an Overweight rating.

Additionally, Gilead Sciences announced a 2.6% increase in its quarterly cash dividend to $0.79 per share of common stock, starting in the first quarter of 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders.

Furthermore, Oppenheimer maintained an Outperform rating and a $115.00 price target for Gilead Sciences stock, following a strong fourth-quarter performance that exceeded consensus estimates. The firm highlighted the resilience of the company’s HIV franchise and its promising prospects in various therapeutic areas.

These are recent developments and they emphasize the company’s robust performance and encouraging future guidance. However, these projections are subject to change and depend on various factors, including market conditions and the company’s ability to navigate upcoming product launches and potential market changes.

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