Gilead Sciences, Inc. Stock Price Targets
Gilead Sciences, Inc. (GILD) Stock Price Targets & Analysis
Comprehensive analysis of short, mid, and long-term price targets for Gilead Sciences, Inc. (GILD).
Give me a comprehensive price target analysis for Gilead Sciences, Inc. (GILD).
Price Target Analysis for Gilead Sciences, Inc. (GILD)
Executive Summary
Gilead Sciences (GILD) exhibits a stable financial position with strong gross and operating margins, supported by a reasonable P/E ratio of approximately 23.49 and a forward P/E of around 15.93, reflecting growth expectations. The current stock price of $118.37 is slightly below the median analyst target of $126, indicating potential upside. Technical indicators suggest a bullish momentum in the near term, with the stock trading above its 50-day moving average. The stock’s beta of 0.347 implies lower volatility relative to the broader market.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $146.87B |
| Enterprise Value | $165.68B |
| P/E (Trailing) | 23.49 |
| Forward P/E | 15.93 |
| Price to Book | 7.47 |
| Return on Equity | 33.4% |
| Debt to Equity | 127.34% |
| Total Cash | $6.06B |
| Total Debt | $24.95B |
| Dividend Yield | 2.67% |
| Beta | 0.347 |
GILD has a solid market capitalization with substantial cash reserves, although it carries a relatively high debt level. The company's profitability metrics are healthy, supported by a profit margin of over 21% and a gross margin exceeding 78%.
Earnings Analysis
Recent earnings show stable net income and increasing EPS over the past year, with the current EPS at approximately $1.56. EPS revisions are predominantly upward, with 13 upward revisions in the past week across both quarterly and yearly estimates, indicating positive analyst sentiment. Revenue and EBITDA figures also support earnings sustainability. Overall, earnings quality remains robust.
Technical Analysis
Current price action indicates a bullish trend, with the price above the 50-day moving average (~$109), RSI at 66.7 suggesting moderate overbought conditions, and MACD signals showing a positive trend. Support levels are near $110, with resistance at $125 and 143 based on analyst targets.
Analyst Consensus & Price Targets
| Target | Value |
|---|---|
| Median | $126.0 |
| Mean | $122.39 |
| High | $143.0 |
| Low | $91.0 |
| Number of Analysts | 24 |
The consensus indicates modest upside potential, with the stock trading below the high target but above the median.
Price Target Analysis
Short-Term (3 months)
- Target: $126
- Justification: Current momentum, positive EPS revisions, and technical indicators support near-term growth.
- Drivers: Market sentiment, upcoming catalysts such as drug approvals or pipeline developments.
Mid-Term (12 months)
- Target: $126–$143
- Justification: Growth trajectory sustained by successful product pipeline and broader market dynamics; potential for upward revision toward high estimates.
Long-Term (3+ years)
- Target: $143 or higher
- Justification: Structural growth from new therapeutics, pipeline advancements, and sustained profitability could push prices toward high-end estimates, though market conditions and competitive landscape will influence outcomes.
Key Risks & Opportunities
- Risks: High debt levels, market competition, regulatory changes, and potential delays in pipeline approvals.
- Opportunities: Strong cash flow, pipeline growth, dividend stability, and a low beta mitigating volatility.
Investment Recommendation
HOLD with a 12-24 month time horizon. The stock exhibits resilience and growth potential, with an expected moderate return aligned with analyst targets (~$126–$143). Investors should monitor earnings releases, pipeline developments, and macroeconomic factors that could influence valuation.
This comprehensive analysis underscores GILD as a stable, moderately undervalued health care stock with upside potential supported by fundamentals and technical momentum.