JPMorgan upgrades Gilead Sciences, says undervalued stock can rally nearly 30% from here

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JPMorgan upgrades Gilead Sciences, says undervalued stock can rally nearly 30% from here
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Investors are underestimating the growth potential of Gilead Sciences' growing oncology business and expanding HIV portfolio, according to JPMorgan.

Investors are underestimating the growth potential of Gilead Sciences ' growing oncology business and expanding HIV portfolio, according to JPMorgan. Analyst Chris Schott upgraded shares of the biopharmaceutical company to overweight, highlighting in a note to clients Tuesday that the company's strong HIV business and his expectations for continued growth from Gilead's oncology franchise.

He also highlighted Gilead's newer lenacapavir prevention treatment administered every six months and not yet approved by the FDA as another potential opportunity for the business going forward. "Overall, we have GILD's HIV franchise growing a low single digit CAGR through the early 2030s," Schott wrote. "During this time, we see Biktarvy remaining the dominant product in the treatment market with revenues growing from $10.2bn in 2022 to $12.

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