Street View: Gilead's HIV strength outshines long-term competitive worries

Gilead Sciences $GILD.O on Tuesday posted an 8% increase in second-quarter product sales, led by strong demand for its HIV treatments, but reported a quarterly loss due to expenses tied to recent acquisitions.

Shares of the company were marginally down in premarket trading.

• Truist Securities (buy, PT: $150) says GILD's HIV franchise remains a durable growth driver and is well-positioned to support future growth.
• RBC Capital Markets (sector perform, PT: $123) says GILD faces modest long-term headwinds from the IRA (U.S. Inflation Reduction Act of 2022) and increasing competition in the HIV market, but strong execution provides a cushion against potential pressure and supports its leadership position.
• Morningstar (fair value: $131) says positive results for Livdelzi (autoimmune liver disease) and the weekly oral HIV treatment islatravir/lenacapavir, along with Trodelvy's expanded breast cancer approval, could help drive mid-single-digit revenue growth over the next few years.
• Jefferies (buy, PT: $180) says it remains positive on GILD, citing the absence of major near-term patent expirations, with Biktarvy's (once-daily HIV treatment) exclusivity extended to 2036, and sees further potential for margin and earnings growth.