Gilead Sciences (GILD) Stock Forecast & Price Target

Gilead Sciences reported strong financial performance in its core therapeutic areas, with FY24 sales from the liver disease franchise reaching $3 billion, reflecting a 9% year-over-year increase driven by the successful launch of Livdelzi. The total HIV sales surged by 16% year-over-year to $19.6 billion, supported by rising demand and enhanced pricing strategies, including a notable contribution from Descovy, which recorded a 21% year-over-year sales increase to $616 million. Additionally, Gilead's oncology portfolio demonstrated resilience with a 12% year-over-year growth, highlighting its successful acquisitions and expanding market presence, particularly with drugs like Yescarta and Trodelvy.

The financial outlook for Gilead Sciences appears negative due to anticipated declines in key revenue streams, particularly from Veklury, which is expected to see a continued decrease in line with diminishing COVID hospitalizations, and a projected mid-teen decline in HIV revenue for FY25. Additionally, competitive pressures in the pipeline for both the HIV market and the oncology segment, particularly from emerging therapies like Iqirvo and challenges related to CAR-T market penetration, further complicate growth prospects. While Gilead forecasts operating margin expansion with flat R&D expenses and reduced SG&A costs, the overall modest revenue expectations and the potential failure to achieve ambitious market positions raise concerns regarding the company’s future financial performance.