Investors may be overlooking the true potential of Gilead Sciences, according to a recent report by analysts at BofA.
In their Friday report, the analysts upgraded Gilead stock (ticker: GILD) to a Buy rating from Neutral and raised the price target to $95 from $88. They also revised their revenue estimates upwards.
Even amidst a challenging market, Gilead’s stock saw a 3.1% increase to $76.21 in Friday’s trading. However, the stock has experienced an 11% decline so far this year.
The analysts highlighted that investors are undervaluing Gilead’s accelerating growth and expanding pipeline. Despite setbacks in its blood-cancer treatment and a downturn in COVID-19 revenue, the company continues to perform well in its core HIV business and is making strides in its hematology/oncology franchise.
Compared to its peers, Gilead’s stock is currently trading at a lower price, making it an attractive investment opportunity, as stated by the BofA analysts. They believe that the current share price is oversold and foresee multiple avenues for future growth.
It is worth noting that last month, Gilead adjusted its earnings forecast for the full year due to a $525 million legal settlement.
In conclusion, the market seems to be underestimating the potential of Gilead Sciences. With its thriving business divisions and promising pipeline, the company offers appealing prospects for investors.