Foster City, California-based biopharmaceutical leader Gilead Sciences, Inc. (GILD), with a market cap of $84.1 billion, specializes in HIV/AIDS, liver diseases, oncology, and respiratory ailments. It is known for its breakthrough drugs with a focus on expanding through collaborations and acquisitions.
Shares of the biopharmaceutical company have significantly underperformed the broader market over the past 52 weeks. GILD has declined 13.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.6%. In 2024 alone, shares of GILD are down 16.6%, compared to SPX's 9.5% gains on a YTD basis.
Zooming in further, GILD also lagged behind the S&P 500 Healthcare Sector SPDR's (XLV) 8.5% gains over the past 52 weeks.
2024 began on a challenging note for Gilead, marked by major setbacks. On Jan. 22, the company faced a significant blow when its shares plummeted nearly 10% following the revelation that one of the company’s pivotal drugs failed to significantly extend the lives of lung cancer patients. The disappointing outcome not only rattled investors' faith but also challenged Gilead's ambitions in the cancer treatment space.
Additionally, on Feb. 7, Gilead experienced another blow as its stock declined by 3.7% following the release of its mixed Q4 results. Revenue saw a slight decline, while adjusted earnings failed to meet expectations. Adding to the disappointment were sluggish sales of Gilead's COVID-19 treatment Veklury and the below-consensus 2024 guidance.
For the current fiscal year, ending in December, analysts expect GILD’s EPS to decline by 44.4% to $3.74 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions. In the most recent quarter, GILD's revenue and EPS surpassed expectations, driven by its strong sales of HIV, Oncology, and Liver Disease treatments.
Among the 24 analysts covering GILD stock, the consensus rating is "Moderate Buy," based on 10 "Strong Buys" and 14 "Holds."
This configuration is slightly less bullish than three months before, with 11 “Strong Buy” ratings.
On April 19, Oppenheimer reaffirmed an "Outperform" rating on Gilead Sciences with a Street-high price target of $105. This implies a potential upside of around 54.9% from the current price levels.
The mean price target of $82.55 represents a premium of 22.2% to GILD's current levels.
On the date of publication, Anushka Mukherjee did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
