Investing.com — Morgan Stanley was upgraded Gilead Sciences Inc (NASDAQ: ) to “overweight” from “equal weight,” raising its price to $113 from $87 for the antiretroviral drug Lenacapavir (PrEP) and next-generation HIV treatment.
“We see the potential for incremental updates to LEN’s PrEP and multiple expansions as the company advances its next-generation HIV treatment strategy,” Morgan Stanley (NYSE:) analyst wrote.
The brokerage highlighted Gilead’s promising pipeline, including CAR-T treatment Anito-cel for multiple myeloma, and revenue and EPS growth of 4.1% and 7.3% annually through 2033, outperforming peers a lot.
Gilead shares, which trade at about 12 times 2025, offer room for further growth, Morgan Stanley said.
Morgan Stanley sees catalysts such as FDA approval and launch of LEN for PrEP in the summer of 2025, Phase 2 data for the once-weekly oral drug combination in 2025, initial data for the once-a-year injection of LEN and a monthly oral decision . Candidate of INSTI.
The brokerage said the biggest risk in its call would be any potential policy changes regarding the Medicaid budget that impact HIV treatment.
