A Look at Gilead Sciences's (GILD) Valuation as Investor Confidence Grows in 2024

Gilead Sciences (GILD) has drawn some attention from investors as its stock continues its steady upward trajectory this year. Shares have climbed nearly 39% year to date, placing the company in a strong position within the biopharma sector.

See our latest analysis for Gilead Sciences.

Momentum remains firmly on Gilead Sciences’ side as the company continues to attract attention for both clinical trial wins and the consistent strength of its pipeline. The company’s 38.8% year-to-date share price return is a testament to growing investor confidence, and the total shareholder return of 41.8% over the past year further reinforces the picture of sustained outperformance over both the short and long term.

If the resilience of Gilead’s stock has you thinking about what other biopharma names might be on the rise, take the next step and explore See the full list for free.

Yet with shares riding high, the key question for investors is whether Gilead Sciences remains undervalued at its current price, or if the recent surge means the market is already factoring in most of the company’s future growth.

Most Popular Narrative: 2.5% Undervalued

Gilead Sciences is trading just below what the most-followed narrative considers its fair value, with the last close price of $127.51 versus a consensus fair value of $130.83. This gap sets the stage for a debate over how much upside the current pipeline and exclusivity extensions really provide for investors at today’s levels.

The expected loss of exclusivity for Biktarvy in the U.S. has been pushed to 2036. This provides several additional years of protected revenue and supports higher price targets for Gilead shares.

Read the complete narrative.

Wondering what’s powering these ambitious forecasts? The narrative is anchored by expectations of expanding margins and a new profit trajectory, supported by bullish assumptions about product longevity and market growth. Curious what numbers and hurdles are baked into this fair value? Click through to see what analysts believe will drive the next phase for Gilead Sciences.

Result: Fair Value of $130.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing policy shifts around U.S. drug pricing and Gilead's heavy reliance on HIV therapies could quickly change the outlook for future growth.

Find out about the key risks to this Gilead Sciences narrative.

Build Your Own Gilead Sciences Narrative

Not convinced by the current forecasts, or have your own perspective you want to test? You can dig into the fundamentals and shape your personal view of Gilead Sciences in just a few minutes. Do it your way

A great starting point for your Gilead Sciences research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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