BMO Capital Markets has adjusted its outlook on Gilead Sciences (NASDAQ: NASDAQ:), increasing the biopharmaceutical company’s price target to $85 from the previous $80.
The firm maintained its Outperform rating on the stock.
The adjustment follows Gilead’s recent financial performance, which presented a mixed picture, with certain areas underperforming and others showing promise.
The company’s recent earnings report indicated a decline in sales for Trodelvy, its cancer treatment, which fell short of expectations by 4%. However, there were positive signs of growth in other areas, particularly in treatments for HIV and liver diseases.
The growth is seen as a potential indicator of Gilead’s progress in solidifying its position within the biopharmaceutical market.
The firm pointed out that Gilead’s pipeline, including drugs like seladelpar and lenacapavir, could significantly contribute to the company’s growth story. Lenacapavir, in particular, is highlighted for its potential impact on the oral pre-exposure prophylaxis (PrEP) market, pending positive results from the PURPOSE 2 study data.
Earlier in the year, Gilead faced challenges within its solid tumor oncology franchise, which led to a cautious stance from investors. However, BMO Capital Markets expressed a cautiously optimistic outlook for the upcoming Phase 2 iMMagine-1 trial data that will be presented at the American Society of Hematology (ASH) meeting.
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