Gilead Sciences stock hits 52-week high of $106.78

Published 19/02/2025, 15:48
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Gilead Sciences Inc . (NASDAQ:GILD) shares soared to a 52-week high, reaching a price level of $106.78, as investors rallied behind the biopharmaceutical company’s robust performance. With a substantial market capitalization of $132.8 billion, InvestingPro analysis indicates the stock is trading in overbought territory. The stock’s ascent reflects a significant surge in value, with Gilead Sciences boasting a 53% increase over the past year, supported by solid revenue of $28.75 billion. This impressive performance, combined with InvestingPro’s Fair Value analysis, suggests the stock may be overvalued at current levels. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, covering this and 1,400+ other top US stocks. The 52-week high milestone is a testament to Gilead’s strategic initiatives and its portfolio of products that continue to drive revenue and profitability, though investors should note the elevated P/E ratio of 274.5x.

In other recent news, Gilead Sciences announced robust fourth-quarter earnings, surpassing expectations with a 6% rise in revenue and a 12% increase in earnings. These gains were driven by strong performances in their HIV and liver disease segments, as well as the cancer drug Trodelvy, despite some challenges in other areas. Analysts at TD Cowen responded by raising their price target for Gilead to $100, maintaining a Buy rating, while RBC Capital adjusted their target to $90, citing potential growth drivers post-2025. BMO Capital Markets also expressed confidence, increasing their price target to $115, highlighting Gilead’s strong market position and growth prospects, especially with the anticipated launch of the long-acting PrEP medication.

Additionally, Gilead’s New Drug Application for Lenacapavir, a twice-yearly injectable for HIV prevention, has been accepted by the FDA and granted Priority Review status. The FDA has set a target action date for June 19, 2025, following promising results from Phase 3 trials. Morgan Stanley (NYSE:MS) maintained an Overweight rating on Gilead, with a price target of $123, projecting U.S. sales for Lenacapavir to potentially exceed consensus estimates. The company is also pursuing regulatory approval in Europe and aims to facilitate access in lower-income countries. These developments underscore Gilead’s strategic focus on expanding its HIV treatment and prevention offerings.

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