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On Wednesday, Piper Sandler analyst Joseph Catanzaro increased the price target on Gilead Sciences stock (NASDAQ:GILD) to $110 from $105, while maintaining an Overweight rating. According to InvestingPro data, the stock is currently trading near its 52-week high at $103.39, with a notable 34% gain over the past six months. The adjustment follows Gilead’s robust fiscal year 2024 performance and encouraging guidance for fiscal year 2025, despite anticipated challenges.
Gilead Sciences reported fiscal year 2024 total product revenues of $28.6 billion, exceeding both the consensus estimate of $28.2 billion and the company’s previous guidance. This success was attributed to strong commercial performance across the board, supported by an impressive 77.8% gross profit margin. Furthermore, the company’s non-GAAP earnings per share (EPS) for FY24 reached $4.62, surpassing the consensus forecast of $4.40 as well as prior guidance.
Looking ahead, the company provided solid fiscal year 2025 guidance, anticipating demand to counterbalance various headwinds, such as the impact of the Inflation Reduction Act (IRA). Gilead also expects significant margin growth due to effective control over operating expenses. The potential commercial introduction of lenacapavir in pre-exposure prophylaxis (PrEP) later in the year is highly anticipated, along with several important late-stage trial results.
In light of the fiscal year 2025 guidance, Piper Sandler adjusted their projections, resulting in an increased price target for Gilead Sciences. The firm’s continued Overweight rating reflects confidence in the company’s outlook and forthcoming developments in its product pipeline.
In other recent news, Gilead Sciences has been making notable strides. The company reported a robust fourth-quarter performance, with revenues hitting $7.57 billion, surpassing the expected $7.1 billion. This success was largely driven by growth in HIV, liver, and oncology business segments. In light of these developments, Oppenheimer has maintained its Outperform rating and $115.00 price target for Gilead Sciences.
The company also announced a 2.6% increase in its quarterly cash dividend to $0.79 per share of common stock, set to commence in the first quarter of 2025. This move underscores Gilead Sciences’ commitment to shareholder value and confidence in its financial strength.
Furthermore, Gilead Sciences exceeded Wall Street estimates for Q4 2024, reporting adjusted earnings per share of $1.90 on revenue of $7.6 billion. The company anticipates revenue between $28.2-$28.6 billion and adjusted EPS of $7.70-$8.10 for the full year of 2025. These recent developments highlight the company’s continued growth and financial stability.
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