Piper Jaffray analyst Joshua Schimmer provides an outlook for Gilead Sciences, Inc. (NASDAQ:GILD) as well as expectations for its clinical development moving forward. For investors, the focus shines on Gilead’s HCV (hepatitis C) franchise, which has been amid a steady and successful transition that only continues to blossom with the introduction of TAF-based therapeutics, designed by Gilead for use in treatment of HIV infection and chronic hepatitis B.

Though Schimmer acknowledges that “GILD’s overall pipeline is rather disappointing,” and recognizes the short-term follies the firm might face, the analyst reiterates an Overweight rating on Gilead with a $108 price target, which represents a nearly 36% increase from where the stock is currently trading. Schimmer believes that with a series of results forthcoming throughout the next two years, appreciation is on the horizon for the company.

Most interesting to Schimmer in GILD’s developing pipeline is the 1/d unboosted integrase inhibitor, what practitioners are hailing as the “Holy Grail” of HIV therapies. Phase 3 results are anticipated sometime next year and should open the doors for investor interest to return to this HIV franchise. Additionally, Schimmer keeps his eyes upon filgotinib for Crohn’s disease.

Schimmer believes, “With a 7x forward multiple, little has to go right with GILD to drive shares higher, especially in a market environment where other sectors feature ~5% earnings growth names trading with P/E multiples >20x. We believe that ongoing conversion of the HIV business to TAF based therapies, introduction of an FDC comprising of a 1/d unboosted integrase inhibitor with Descovy (TAF/Emtriva) along with stabilization of the HCV franchise will be enough to convince investors that a flattish earnings outlook can drive shares up to a modest 10x P/E multiple (~40% upside).”

Schimmer concludes with confidence, “GILD is our top large cap pick as a deep value name.”

As usual, we advise taking analyst notes with a grain of salt. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Joshua Schimmer is ranked #3,982 out of 4,120 analysts. Schimmer has a 38% success rate and loses 7.4% in his yearly returns. When recommending GILD, Schimmer loses 2.5% in average profits on the stock.

TipRanks analytics show GILD as a Buy. Based on 17 analysts polled in the last 3 months by TipRanks, 8 rate a Buy on Gilead, while 9 maintain a Hold. The 12-month average price target stands at $108.23, marking a nearly 36% upside from where the shares last closed.

Recommended Article: Credit Suisse Dives In on Gilead as Relationship with Express Scripts in HCV Is Potentially Improving