BofA analysts upgraded shares of Gilead Sciences (NASDAQ:GILD) to Buy from Neutral, with a price target of $95, up from $88 per share, in a note to clients on Friday.
The analysts told investors that the pharmaceutical company's HIV drug upside remains compelling.
"We think Gilead's accelerating growth and expanding pipeline is underappreciated by investors," they wrote. "In particular, Gilead is executing well in its core HIV business and in the emerging hematology/oncology (heme/onc) franchise despite recent setbacks for magrolimab and declining Covid-19 revenues."
As a result, the analysts believe GILD shares have underperformed so far this year. They are currently down 13% in 2023 but have climbed over 1% premarket in Friday's session.
"We think shares look oversold, especially given 1) restoration of durable HIV franchise growth, 2) an increasing contribution from the heme/onc franchise(11% of revs today; 17% in 2027), and 3)optionality in both the HIV and heme/onc pipeline," the analysts concluded.