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On Wednesday, Oppenheimer reiterated its Outperform rating and $115.00 price target for Gilead Sciences (NASDAQ:GILD) stock, following a strong fourth-quarter performance that surpassed consensus estimates. Gilead Sciences, currently trading at $96.14 and commanding a market capitalization of $119.82 billion, reported a quarterly revenue of $7.57 billion, exceeding the expected $7.1 billion, with year-over-year growth in HIV, liver, and oncology business segments. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.04 out of 5, with 10+ additional ProTips available to subscribers.
The analyst at Oppenheimer highlighted the HIV franchise’s resilience, noting its high single-digit year-over-year growth despite an aging product lineup. This performance contributes to Gilead’s overall revenue growth of 3.31% year-over-year, while maintaining a strong 77.8% gross profit margin. The franchise is expected to receive a boost with the midyear anticipated approval of lenacapavir, a drug awarded Breakthrough Therapy designation, barring unforeseen challenges from the new Health and Human Services administration.
The report also addressed potential future challenges, acknowledging that Medicare Part D reforms might impact the growth of the HIV franchise starting in 2025. However, the firm anticipates that other areas, such as oncology—with the upcoming results from the ASCENT-03 study for Trodelvy—and liver—with the launch of Livdelzi—will contribute to the company’s growth and compensate for any slowdown in the HIV segment.
Gilead’s strong quarter and promising prospects in various therapeutic areas have led Oppenheimer to maintain its positive outlook on the company’s stock. The firm’s $115 price target reflects confidence in Gilead’s ability to navigate upcoming product launches and potential market changes.
In other recent news, Gilead Sciences has announced significant financial developments. The biopharmaceutical firm has raised its dividend for Q1 2025 to $0.79 per share, marking a 2.6% increase. This increase underscores Gilead Sciences’ commitment to shareholder value and confidence in its financial strength.
Additionally, Gilead Sciences reported Q4 results that surpassed analyst expectations, with adjusted earnings per share of $1.90 on revenue of $7.6 billion. The company’s total product sales grew 7% YoY to $7.5 billion in Q4, driven by a 16% growth in HIV product sales.
Looking ahead, Gilead forecasts 2025 revenue between $28.2-$28.6 billion and adjusted EPS of $7.70-$8.10, exceeding consensus analyst estimates. These recent developments reflect Gilead’s strong financial performance and positive outlook for the future.
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