Piper Jaffray analyst Joshua Schimmer is out with a research report on shares of Gilead Sciences, Inc. (NASDAQ:GILD), reiterating an Overweight rating with a $108 price target, which represents a 38% increase from where the stock is currently trading.

For Schimmer, there are a lot of reasons to be frustrated with the biotech giant, but understands that when evaluating “a value stock,” investors should adjust their expectations and not hope for “perfection.” For the analyst, even considering legitimate threats lurking around GILD’s HIV and HCV business, Schimmer asserts the truth is “that little has to go right relative to sentiment for that multiple to expand considerably.”

Recently, the Wall Street Journal article underscored a possible two-drug HIV regimen based on GSK’s dolutegravir. However, on the heels of this emerges a great influx of questions for Schimmer. For instance, “We note that 2-drug options attempting to replace the standard 3-drug regimens have come and gone without success, often because they do not offer adequate protection against emergence of resistance either in the clinical trial or the real world setting.”

“While there is always the chance that a new 2-drug combo will thread the needle, and certainly the integrase class has a strong profile, we strongly doubt the field will rush to a novel paradigm any time soon,” he comments, noting the strength of a cheaper two-drug regiment in the midst of steep HIV resistance prices.

Recommended Article: Piper Jaffray’s Take on Gilead Amid HIV/HCV Franchise Debate

Though Schimmer acknowledges a gaping loss in confidence in the company’s leadership and its questionable ability to come out on top when grappling long-term challenges and intense competition to be able to still generate value for GILD, he concludes, “the company does have a strong track record of value creation historically.” The real worries lie with whether investors will be as patient, as for now, GILD’s detriment might be its “refusal to hear the cacophony of concerns” urging for a research strategy overhaul. Ultimately, for the analyst, this is what prevents GILD “from achieving its true potential.”

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, analyst Joshua Schimmer is ranked #3,973 out of 4,129 analysts. Schimmer has a 39% success rate and faces a loss of 6.2% in his annual returns. When recommending GILD, Schimmer loses 1.5% in average profits on the stock.

TipRanks analytics demonstrate GILD as a Buy. Based on 16 analysts polled in the last 3 months, 50% rate Buy on GILD, while 50% maintain a Hold. The 12-month average price target stands at $108.06, marking a 38% upside from where the shares last closed.Screen Shot 08-30-16 at 03.02 PM