Truist Securities upgrades Gilead Sciences stock to Buy on HIV strength

Published 08/08/2025, 12:48
©  Reuters

Investing.com - Truist Securities upgraded Gilead Sciences (NASDAQ:GILD), a prominent player in the biotechnology industry with a market capitalization of $137 billion, from Hold to Buy on Friday, raising its price target to $127.00 from $108.00 following the company’s strong second-quarter performance. The company maintains a "GREAT" financial health score according to InvestingPro analysis.

The upgrade comes after Gilead beat second-quarter 2025 expectations for both sales and earnings per share, with the HIV segment driving the outperformance. With impressive gross margins of 78% and a stellar 50% return over the past year, the strength in HIV prompted management to raise its full-year guidance, now projecting 3% year-over-year growth compared to its previous flat outlook.

While Gilead’s recently launched drug Yeztugo was too new to significantly impact second-quarter results, Truist Securities expressed encouragement about early demand indicators. The firm described Gilead as having "the best-in-class, unparalleled HIV business in the sector." InvestingPro subscribers can access 10+ additional exclusive insights and a comprehensive Pro Research Report about Gilead’s market position and growth potential.

Truist also highlighted that Gilead’s cancer drug Trodelvy returned to growth this quarter, increasing 14% year-over-year. The firm expressed optimism about Trodelvy’s potential frontline uptake in 2026.

Despite ongoing challenges in Gilead’s cell therapy business, Truist believes it will be reinvigorated with the addition of Anito-cel to the company’s portfolio. Based on InvestingPro’s Fair Value analysis, Gilead currently appears to be trading near its fair value, with 9 analysts recently revising their earnings estimates upward for the upcoming period.

In other recent news, Gilead Sciences announced its second-quarter 2025 earnings, surpassing Wall Street expectations. The company reported non-GAAP earnings per share of $2.01, exceeding the consensus estimate of $1.98. Additionally, Gilead’s revenue reached $7.1 billion, surpassing the anticipated $6.97 billion. UBS responded to these results by raising its price target for Gilead Sciences from $108 to $112, while maintaining a Neutral rating on the stock. The increase in the price target reflects the company’s strong financial performance. These developments indicate a positive reaction from the market and analysts to Gilead’s recent financial results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.