Gilead Sciences (GILD) Remains Undervalued Despite Outperformance - Oppenheimer

Oppenheimer analyst Hartaj Singh reiterated an Outperform rating and $100.00 price target on Gilead Sciences (NASDAQ: GILD) noting that late 2020, the company has steadily been delivering positive pipeline updates (Yescarta in 2nd-line LBCL), while prepping investors for a raft of approaching clinical/regulatory catalysts. Despite this, the analyst detects 'categorical negative sentiment' often expressed by investors.

The analyst stated "We believe that starting with Yescarta's recent 2nd-line success (possibly adding margin ≥2022), the domino effect for GILD's oncology and virology pipeline could be in play. With remdesivir potentially having a long revenue tail against COVID-19 (also GILD developing orals) and fundamentals improving, we believe investors should pay heed." He went on to state "Investors could argue that GILD's positive share price performance YTD (up 24% vs 17% peer-average) could be anticipating various pipeline success; we disagree. GILD's FY22 P/E multiple is still ~20% below the large-cap average/13X. In addition, sales/earnings progression for ≥2022 have barely budged and while we are in line with consensus, we are getting higher (upwards) conviction here."

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $71.19 yesterday.

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Cisco rating cut at HSBC as analyst sees a lack of catalysts
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49