Good dividend stock with growth potential.
I remain invested.
Investing.com - Needham maintained its Buy rating and $133.00 price target on Gilead Sciences (NASDAQ:GILD) stock on Monday, emphasizing that the company's pipeline in early inflammation therapies is a key element of its long-term growth strategy. The stock is currently trading at 112.69 dollars and has a market capitalization of 140 billion dollars. Analysis from InvestingPro suggests that the stock is undervalued, supported by strong financial metrics and an "OUTSTANDING" Total Health Score.
The research firm noted that while these anti-inflammatories are not expected to contribute to near-term sales, they are increasingly important and could serve as a commercial bridge before Gilead's HIV drug Biktarvy loses its exclusivity at the end of 2033. The company's solid financial position, with a healthy liquidity ratio of 1.32 and strong cash flows, provides ample resources to develop its pipeline.
Needham identified several promising candidates in Gilead's inflammation pipeline, including edecesertib (oral IRAK4 inhibitor for lupus), GS-1427 (oral α4β7 inhibitor for IBD), tilpisertib fosmecarbil (oral TPL2 inhibitor for IBD) and a preclinical oral STAT6 program.
The company indicated that Gilead may become more active in business development as part of its diversification strategy beyond HIV and oncology and would likely focus on earlier stage assets to complement its pipeline.
Gilead's inflammation drug pipeline reflects the company's efforts to broaden its therapeutic focus and develop new revenue streams before the patents for its core HIV business expire.
