Gilead Sciences (GILD) offered "plenty" to like in Q2, with strong HIV performance more than offsetting slower franchises, RBC said in a note Tuesday.
The report said it should be well received that the higher HIV growth guidance helped drive the incremental full-year product sales guidance raise, reflecting expectations for steadying volume dynamics and favorable pricing pull through.
Still, the note pointed to some modest long-term headwinds, including the Inflation Reduction Act and a more fragmented HIV market with more switch options.
But its strong operational performance sets a higher base into any potential erosion, and the company has multiple shots to continue dominance, the note added.
The report said sentiment may lean positive and keep shares at optimistic levels as its near-term performance is expected to remain solid amid "palatable" forward multiple.
RBC raised its price target to $123 from $120 while maintaining its sector perform rating.
Price: 130.80, Change: -4.45, Percent Change: -3.29
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