Morgan Stanley raises Gilead Sciences stock price target to $143 on HIV strength

Published 08/08/2025, 12:48
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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Gilead Sciences (NASDAQ:GILD) to $143.00 from $135.00 while maintaining an Overweight rating, citing strong performance in the company’s HIV business. With a current market capitalization of $137 billion and trading at $110.28, InvestingPro analysis suggests the stock is slightly undervalued, supported by strong fundamentals and 9 analysts recently revising their earnings estimates upward.

The price target increase follows Gilead’s second-quarter 2025 results, which showed revenue of $7.08 billion, in line with Morgan Stanley’s estimate of $7.07 billion and above consensus expectations of $6.98 billion. The company reported non-GAAP earnings per share of $2.01, falling between Morgan Stanley’s estimate of $2.05 and consensus of $1.96. The stock has demonstrated remarkable strength, delivering a 50.6% return over the past year and 21.08% year-to-date. For deeper insights into Gilead’s financial health and growth potential, check out the comprehensive analysis available on InvestingPro, which includes 12 additional key insights about the company.

Gilead has raised its 2025 product revenue guidance to $28.3-28.7 billion from its previous range of $28.2-28.6 billion, representing a $100 million increase at the midpoint. The company now expects its HIV sales to grow approximately 3% year-over-year, driven by strong performance of Biktarvy and Descovy products.

The biopharmaceutical company also increased its 2025 non-GAAP EPS guidance to $7.95-$8.25 from the previous range of $7.70-$8.10, a $0.20 increase at the midpoint. This updated outlook exceeds Morgan Stanley’s revised estimate of $8.03 and consensus expectations of $8.01.

Gilead’s guidance update maintains its existing assumptions regarding Medicare Part D, its recently launched Yeztugo product, and the current policy environment. The company has indicated that the impact of known tariffs is expected to remain manageable throughout 2025.

In other recent news, Gilead Sciences reported a strong performance in its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved non-GAAP earnings per share of $2.01, exceeding the forecasted $1.96, while its revenue reached $7.1 billion, beating the anticipated $6.97 billion. This outperformance was driven by the strength in the HIV segment, prompting Gilead to raise its full-year guidance to project a 3% year-over-year growth. Truist Securities responded by upgrading Gilead Sciences from Hold to Buy, increasing the price target to $127.00 due to the robust results. UBS also adjusted its price target on Gilead, raising it to $112.00 from $108.00, while maintaining a Neutral rating on the stock. These developments highlight the positive reception of Gilead’s financial results among analysts and investors.

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