© Reuters Gilead (GILD) stock downgraded at RBC as analyst sees shares range-bound in 2023
By Senad Karaahmetovic
RBC Capital Markets analysts downgraded shares of Gilead Sciences (NASDAQ:) to Peer Perform from Outperform with a price target of $87 per share, implying a less than 2% upside potential from current levels.
While they praised Gilead’s management, they believe the stock is likely to trade around current levels in 2023.
“We expect continued good operational execution, but believe it will take time to gain more definitive visibility on the next sets of meaningful potential drivers: potential differentiation within large-market cancers like lung and breast, conversion of HIV treatment and PrEP to longer life cycle injectables, replenishment of COVID-19 revenues with an oral, and/or expansion into inflammation,” they wrote to clients in a note.
Despite the downgrade call, they urge investors to continue owning GILD shares due to the company’s “low-risk profile and good LT prospects.” Moreover, they urged the firm’s clients to add to their positions during any dips in GILD stock.
“All things considered, GILD still has a reasonably favorable profile that we believe justifies holding the stock, even if we would wait to add further to positions,” the analysts added.
Gilead shares are down nearly 0.5% in pre-market Tuesday.
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