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These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s. Some of the reports’ issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed.

Gilead Sciences


GILD-Nasdaq

Overweight • Price $62.32 on Oct. 3

by J.P. Morgan

We are refreshing our thesis on Gilead and upgrading shares to Overweight from Neutral, as we see the combination of increased visibility on the company’s HIV franchise and an emerging oncology franchise not well reflected in valuation at 9.5 times 2022 earnings per share. At current levels, we see Gilead’s HIV business alone supporting the company’s entire market cap. And with an oncology franchise that we forecast to reach $5 billion in sales by 2030, as well as potential upside to lenacapravir estimates over time, we see shares as clearly undervalued at current levels. Finally, while Gilead’s acquisition track record represents a point of controversy in the story, we see the company’s capital deployment priorities pivoting to smaller, tuck-in acquisitions. We establish a December 2023 price target of $80, based upon our discounted cash flow valuation.