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Investing.com - Mizuho has raised its price target on Gilead Sciences (NASDAQ:GILD) to $140.00 from $131.00 while maintaining an Outperform rating on the stock. The new target aligns with broader market optimism, as Gilead has delivered a 43.4% return over the past year and is currently trading near its 52-week high of $128.70. InvestingPro data shows the stock is slightly undervalued based on its Fair Value assessment.
The firm cited multiple factors for the increased target, including a longer exclusivity period for Biktarvy, with U.S. loss of exclusivity now expected in 2036 versus the previous estimate of 2033 following generic litigation settlements.
Mizuho projects Biktarvy will reach approximately $17.5 billion in peak worldwide sales, contributing significantly to the company’s revenue outlook. This would substantially boost Gilead’s current annual revenue of $29.09 billion, potentially strengthening its already robust financial health, which InvestingPro rates as "GREAT" with a score of 3.18.
The research firm also highlighted Yeztugo’s market potential, noting the total addressable market for PrEP (pre-exposure prophylaxis) could be "much larger than currently appreciated," potentially reaching $15-20 billion, with Mizuho modeling peak worldwide sales of approximately $9.1 billion for the drug.
Mizuho has increased its growth projection for Gilead’s overall HIV business to approximately 5% from 3% previously, aligning with company guidance. With a P/E ratio of 19.49 and analyst high target of $153, Gilead offers investors a 2.53% dividend yield while maintaining moderate debt levels. Discover 10+ additional ProTips and comprehensive analysis in Gilead’s Pro Research Report, available exclusively on InvestingPro.
In other recent news, Gilead Sciences announced that its investigational HIV treatment, a once-daily single-tablet regimen combining bictegravir and lenacapavir (BIC/LEN), achieved positive results in the Phase 3 ARTISTRY-1 trial. The study demonstrated that the regimen was statistically non-inferior to multi-tablet therapies in maintaining viral suppression among adults with HIV. Additionally, Gilead has started delivering lenacapavir, its twice-yearly injectable HIV prevention medication, to Eswatini and Zambia, marking a significant milestone in expanding HIV prevention efforts in sub-Saharan Africa.
On the downside, Gilead reported that its cancer drug Trodelvy did not meet the primary endpoint in a Phase 3 trial for HR+/HER2-negative metastatic breast cancer. The trial, known as ASCENT-07, aimed to compare Trodelvy against chemotherapy but failed to achieve its primary goal of progression-free survival. Meanwhile, the company also announced the upcoming departure of Deborah H. Telman, its Executive Vice President, Corporate Affairs and General Counsel, effective December 5. The company did not provide further details on the succession plan.
These developments follow Gilead’s ongoing efforts in the HIV treatment and prevention landscape, alongside challenges in its oncology pipeline.
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