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Research Alert: CFRA Maintains Hold Opinion On Shares Of Gilead Sciences, Inc.

· 02/05/2021 06:12

11:10 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target price by $3 to $72, reflecting a multiple of 10x our 2021 EPS. Q4 EPS of $2.19 vs. $1.10 was $0.04 above consensus. We lift our 2021 EPS to $7.18 from $6.58 and we start our 2022 EPS at $6.96. Product sales excluding Veklury declined 7% Y/Y, down from +2% in Q3 because of the pandemic's worsened impact on GILD's HIV and hepatitis C virus franchises. Offsetting weakness in the core businesses was Covid treatment Veklury, which added 33% ($1.9 billion) to total product sales growth as Covid-related hospitalizations surged in Q4. We continue to believe that Veklury is not a critical asset in the long-run because of vaccines. In 2020, GILD significantly enhanced its oncology portfolio, which we believe can drive long-term growth with the support of robust cash flows from the company's HIV franchise; however, it's unclear when GILD sales will see acceleration. Trodelvy, acquired as a part of Immunomedics in October 2020, will be a core part of GILD's oncology franchise.