Morgan Stanley upgrades Gilead on HIV treatment growth

Investing.com -- Morgan Stanley upgraded Gilead Sciences Inc (NASDAQ:GILD ) to "overweight" from "equal weight," raising its price target to $113 from $87 on HIV prevention drug Lenacapavir (PrEP) and next-gen HIV treatments.

“We see the potential for upward estimate revisions on LEN for PrEP and further multiple expansion as the company makes progress with its next-gen HIV treatment strategy,” Morgan Stanley (NYSE:MS ) analyst wrote.

The brokerage highlighted Gilead’s promising pipeline, including CAR-T therapy Anito-cel for multiple myeloma, and projected revenue and EPS growth of 4.1% and 7.3% annually through 2033, outperforming peers.

Gilead’s shares, trading at about 12 times 2025 earnings, offer room for further multiple expansion, Morgan Stanley said.

Morgan Stanley view catalyst such as FDA approval and launch of LEN for PrEP in summer 2025, Phase 2 data for once-weekly oral combination of drug in 2025, initial data for the once-yearly injectable formulation of LEN and the decision on a monthly oral INSTI candidate.

The brokerage said most significant risk to its call would be any potential policy changes with respect to Medicaid budgets that impact HIV therapies

Source: Investing.com