Investing.com — Morgan Stanley upgraded Gilead Sciences Company (NASDAQ: ) to “overweight” from “equal weight,” raising its price target to $113 from $87 for the antiretroviral drug Lenacapavir (PrEP) and next-generation HIV treatment.
“We see the potential for high LEN PrEP estimates and multiple expansions as the company moves forward with its HIV treatment strategy,” Morgan Stanley (NYSE:) analyst wrote.
The brokerage highlighted Gilead's promising pipeline, including the CAR-T treatment Anito-cel for multiple myeloma, and projected revenue and EPS growth of 4.1% and 7.3% annually through 2033, besting peers.
Gilead's shares, trading at about 12 times 2025 earnings, offer plenty of upside, Morgan Stanley said.
Morgan Stanley sees catalysts such as FDA approval and launch of LEN for PrEP in the summer of 2025, Phase 2 data for the once-weekly oral combination in 2025, initial once-a-year data and a monthly oral decision. Candidate of INSTI.
The brokerage said the most important risk in its call would be any potential policy changes regarding the Medicaid budget affecting HIV treatment.