Xiaomo: Optimistic about the prospects of cancer business in Gilead Sciences, upgraded to "overweight"
智通财经2022-10-04
On Tuesday,JPMorgan ChaseWillGilead SciencesThe rating was upgraded to "overweight" from "neutral", citing greater clarity about the company's HIV business and owning an emerging but undervalued oncology business. JPMorgan also raised its December 2023 price target for the stock to $80 due to Gilead's recent settlements with several generic drug manufacturers over patents for tenofovir alafenamide, an ingredient used to treat AIDS.Additionally, the company mentioned long-term growth opportunities for lenacapavir. lenacapavir, an experimental AIDS treatment, is currently under review by the FDA with a scheduled effective date of December 27.
"At current levels, we think the AIDS business in Gilead Sciences alone supports the entire stock market value," the analysts wrote.
Gilead's cancer business portfolio is expected to add about $5 billion in sales by 2030, and analysts believe the stock is "significantly undervalued at current levels," as they point to further valuation gains for lenacapavir, while the HIV business is undervalued.
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