JPMorgan Chase: Optimistic about the prospects of Gilead Sciences' cancer business, upgrades rating to "Overweight"
智通财经2022-10-04
Tuesday,JPMorgan ChasewillGilead SciencesThe rating was upgraded from "neutral" to "overweight" on the grounds that the company's HIV business is more clear and it has an emerging but undervalued oncology business. JPMorgan also raised its December 2023 price target for the stock to $80 due to Gilead's recent settlement with several generic drug manufacturers regarding patents for tenofovir alafenamide, an ingredient used to treat AIDS.In addition, the company also mentioned the long-term development opportunities of lenacapavir. lenacapavir is an experimental AIDS treatment drug that is currently under review by the FDA, and its scheduled effective date is December 27.
Analysts wrote, "At current levels, we believe that Gilead Sciences' AIDS business alone supports the overall stock market capitalization."
By 2030, Gilead's cancer business portfolio is expected to increase sales by about $5 billion. Analysts believe that the stock is "clearly undervalued at the current level" because they pointed out that the valuation of lenacapavir will rise further, and the HIV business is undervalued.
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