Gilead Sciences (GILD) PT Raised at RBC Capital Following Patient Survey

RBC Capital analyst Brian Abrahams raised the price target on Gilead Sciences (NASDAQ: GILD) to $95.00 (from $92.00) while maintaining a Sector Perform rating.

The analyst commented: "PrEP Dive Day 2: Survey Suggests Solid Switching Oppt'ies, But Mkt Expansion May Be Tougher Than Perceived; We followed up on our 2022 patient survey to gauge how perceptions of lena among high-risk individuals on/off PrEP may have changed following ph.III data and approaching potential launch. High clinician engagement, lower-than-expected oral adherence, and consideration of switching among current PrEP users could all facilitate growth even with some Descovy cannibalization. However, most not on PrEP do not view themselves as sufficiently high-risk or want to take medications, or see q6m subQ as meaningfully advantageous vs. currently available daily orals, and <15% plan to proactively request lena. Net-net, and combined with our payer survey showing amenability, we increase our medium-term lena ests. to allow for more switching particularly off generic Truvada, which increases our PT to $95, though we remain confident in our below-consensus peak, as Street still seems overly optimistic on PrEP overall mkt growth. GILD has positive attributes (healthy HIV franchise, anito-cel) and multiple is not out-of-line vs. peers, but with what we believe are realistic ests. for PrEP and HIV life cycle, it is difficult to get well >$100 fundamentally on a DCF."

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