Gilead upgraded to overweight at Piper Sandler on future revenue growth
Matteo Colombo


Piper Sandler has upgraded Gilead Sciences (NASDAQ:GILD) to overweight from neutral saying that the shares are undervalued and it is a "defensive healthcare name with improved fundamentals."
The firm upped its price target to $96 from $79 (~37% upside based on Thursday's close).

Analyst Do Kim said that "multiple roadblocks have cleared for Gilead's HIV and oncology franchises, providing greater visibility on future revenue growth."
Kim noted that the late-stage pipeline has lower clinical risk given that clinical holds on lenacapavir and magrolimab -- under development for, respectively, HIV, and lymphoma and multiple myeloma -- have been lifted, putting phase 3 development back on track.
He added that Trodelvy (sacituzumab) approval in third-line HR+/HER2- breast cancer, as well as Yescarta's (axicabtagene ciloleucel) success in second-line large B-cell lymphoma will "boost confidence in the oncology business to support future revenue growth."
Kim is also increasing his estimates for Gilead (GILD) given the company's Q3 2022 beat and raised full-year outlook.
Check out Seeking Alpha contributor Deep Value Ideas' assessment of Gilead (GILD) in light of its Q3 results.