Key insights
- RBC Capital maintains a Sector Perform rating on Gilead (GILD) due to concerns about Yeztugo's persistence rates, potentially impacting long-term sales estimates. Prescription trends suggest a Q1 beat, but lower-than-expected persistence adds risk. Six analysts have revised earnings downwards ahead of the April 23 earnings release. The firm's neutral stance reflects caution regarding optimistic peak sales projections.
Investing.com - RBC Capital reiterated a Sector Perform rating on Gilead Sciences Inc. (NASDAQ:GILD) with a $123.00 price target. The stock currently trades at $139.77, above the analyst’s target, following a strong 37% gain over the past year.
The firm examined third-party prescription trends for Yeztugo, now nine months into its launch, to assess re-dosing and persistence rates as well as overall PrEP market growth and switching dynamics.
RBC Capital found that initial persistence is likely around or lower than 70%, which was cited in recent doctor checks. The firm noted this could disappoint investors who initially expected all patients would schedule appointments at strict six-month intervals.
The firm said prescription trends suggest a sizeable first-quarter Yeztugo beat versus sell-side consensus. RBC Capital noted variability and likely shifting capture rates as caveats to its analysis.
The firm said the persistence data adds potential risk to what it views as optimistic long-term peak Yeztugo sales estimates, contributing to its neutral stance on the shares. This caution aligns with broader analyst sentiment, as an InvestingPro Tip notes that 6 analysts have revised earnings downwards for the upcoming period. With earnings scheduled for April 23, investors can access detailed analysis through Gilead’s comprehensive Pro Research Report, available alongside 1,400+ other US equities on InvestingPro.
In other recent news, Gilead Sciences Inc. has made significant strides in expanding access to its HIV prevention drug, lenacapavir. The U.S. State Department, PEPFAR, and The Global Fund are set to invest in increasing the reach of this twice-yearly injectable medicine to an additional 1 million people, aiming to cover a total of 3 million individuals in high-incidence, resource-limited countries by 2028. Meanwhile, Gilead has expanded its collaboration with Tempus AI, gaining enterprise-wide access to Tempus’ AI-driven Lens platform for oncology research and development. This collaboration is expected to enhance Gilead’s research capabilities by utilizing broader datasets and analytical services.
In terms of financial activities, Truist Securities has raised its price target for Gilead Sciences to $155, maintaining a Buy rating. The firm anticipates Gilead’s first quarter 2026 revenue to be approximately $6.94 billion, slightly above the consensus estimate. TD Cowen also reiterated a Buy rating with a $160 price target, highlighting Gilead’s recent acquisition spree totaling around $15 billion. These acquisitions include the $7.8 billion purchase of Arcellx, a $1.8 billion co-acquisition of Ouro Medicines, and a $5 billion acquisition of Tubulis.
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