Investing.com — Morgan Stanley improved Gilead Sciences Inc (NASDAQ: ) to “overweight” from “equal weight,” raising its price target to $113 from $87 for HIV prevention drug Lenacapavir (PrEP) and next-generation HIV treatment.
“We see the potential for an upward revision to LEN for PrEP and further multiple expansion as the company moves forward with its next-generation HIV treatment strategy,” Morgan Stanley (NYSE:) wrote the analyst.
The brokerage highlighted Gilead’s promising offerings, including the CAR-T therapy Anito-cel for multiple myeloma, and projected revenue and EPS growth of 4.1% and 7.3% annually through 2033, outperforming competitors.
Gilead’s stock, which trades at about 12 times 2025 earnings, offers room for further multiple expansion, Morgan Stanley said.
Morgan Stanley catalyst views such as FDA approval and launch of LEN for PrEP in summer 2025, Phase 2 data for once-weekly oral combination drug in 2025, initial data for once-a-year injectable formulation of LEN and decision on monthly oral administration INSTI candidate.
The brokerage said the biggest risk to its call would be any potential policy changes to the Medicaid budget that affect HIV therapy
