Key Takeaways

• Raymond James analysts upgraded Gilead Sciences stock to "outperform" from "market perform."

• The upgrade was driven by Gilead's drug lenacapavir, which showed a 100% effectiveness rate in preventing HIV infection in women.

• Lenacapavir and PBC treatment seladelpar could see combined annual sales of $3.7 billion by 2030, according to Raymond James' model.

Gilead Sciences (GILD) shares climbed in intraday trading Monday after Raymond James analysts upgraded the drug developer to “outperform” from “market perform.”

The firm issued a price target of $93, a nearly 40% premium to Friday’s closing price of $66.69. Gilead shares were up 0.6% around midday Monday but are down about 15% this year.

Raymond James Notes 'Outstanding Data' From Lenacapavir Phase 3 Trial

Raymond James pointed to “outstanding data” from a Phase 3 trial of Gilead’s injectable HIV treatment lenacapavir, which showed a 100% effectiveness rate in preventing HIV infection in women. Gilead is expected to launch lenacapavir in late 2025, assuming success in its next study.

The firm also cited the potential Food and Drug Administration (FDA) approval of seladelpar for the treatment of primary biliary cholangitis (PBC), a chronic autoimmune disease affecting the liver. Together, the two treatments could generate $3.7 billion in combined annual sales by 2030, according to Raymond James’ model.

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