Jefferies Initiates Gilead Buy Rating with $180 Target Citing 2036 Patent Runway
Jefferies initiated coverage on Gilead Sciences with a Buy rating and $180 price target, highlighting a clean patent runway through 2036 and high operating margins underpinned by overlapping franchises. Gilead reported Q4 2025 revenue of $7.93 billion and full-year 2025 revenue of $29.4 billion.
1. Jefferies Initiates Coverage
Jefferies initiated coverage on Gilead with a Buy rating and $180 price target, citing a clean patent runway through 2036, high operating margins, and synergy from overlapping franchises as key drivers of value.
2. Q4 and Full-Year Highlights
Gilead reported Q4 2025 revenue of $7.93 billion, beating the $7.85 billion consensus, with non-GAAP EPS of $1.86. Full-year 2025 revenue reached $29.4 billion, up 2% year-over-year, driven by Biktarvy’s $3.97 billion and Descovy’s 33% surge to $819 million.
3. Investment Drivers
The absence of major exclusivity losses until 2036 underpins predictable cash flows, enabling Gilead to invest in pipeline expansion, pursue margin improvement, and sustain a 2.2% dividend yield with a quarterly payout of $0.82 per share.
4. Market Reaction and Outlook
Shares are up 19.5% year-to-date and trading above the 200-day moving average, with the $180 target implying roughly 23% upside from current levels, supported by pipeline catalysts including the twice-yearly HIV prevention therapy Yeztugo.