Oppenheimer Lowers Price Target on Gilead Sciences Following Fourth Quarter Earnings Report
In light of Gilead Sciences’ recent fourth quarter earnings report and investor update, Oppenheimer has adjusted its outlook on the biopharmaceutical company. The firm has revised its price target on Gilead’s stock, lowering it to $105 from the previous $115 while maintaining an Outperform rating.
Gilead Sciences, a NASDAQ-listed company under the ticker NASDAQ:GILD, reported fourth quarter 2023 revenues and earnings that fell short of Oppenheimer’s expectations. Specifically, the sales of HIV treatments were highlighted as underperforming. Furthermore, Gilead faced setbacks in its drug pipeline, with the Phase 3 OAKTREE trial for oral obeldesivir failing to meet its primary endpoint and the discontinuation of further development of the oncology asset magrolimab in hematologic cancers.
As a result of these developments, Oppenheimer has revised its financial model for Gilead Sciences. The updated projections include a slight decrease in projected HIV sales and the removal of magrolimab for hematologic indications. These adjustments have influenced the decision to lower the price target.
Despite these changes, Oppenheimer remains optimistic about Gilead’s prospects for the year 2024. The firm anticipates potential revenue and earnings growth based on Gilead’s fiscal year 2024 guidance and previous discussions with management regarding operational expenditure discipline. Moreover, Oppenheimer expects the impact of COVID-19 treatment Veklury on the profit and loss statement to diminish, allowing for a stronger financial performance in the upcoming year.
Analyst comment
Neutral news.
As an analyst, the market for Gilead Sciences is expected to remain relatively stable in the near term. Although the company faced challenges in its fourth quarter earnings and drug pipeline, Oppenheimer remains optimistic about Gilead’s prospects for 2024 based on potential revenue growth and improved financial performance. However, the lowered price target suggests a more cautious outlook on the stock.
