What’s Next For Gilead Sciences, Inc. (GILD)? An Opportunity In NASH


There are those who are not in Gilead Sciences, Inc.’s (NASDAQ:GILD) corner amid an underwhelming Hepatitis C segment that looks to only continue to disappoint. Yet, Stifel analyst Katherine Breedis believes Wall Street is vastly underestimating this biotech giant, particularly considering its Non-Alcoholic Steatohepatitis pipeline.

As such, especially on the heels of the European Society of the Study of the Liver (EASL) and International Liver Congress (ILC) annual meeting in Amsterdam, the analyst reiterates a Buy rating on shares of GILD with an $87 price target, which represents a 29% increase from where the stock is currently trading.

When looking at the bigger picture, “[…] GILD has both the greatest breadth of pipeline assets, deep knowledge of liver biology and comprehensive biomarker strategy for treatment of […] (NASH), a growing disease area affecting est. 15MM in the US alone with no approved treatment options. […] Unique to GILD’s pipeline is GS-0976, a Ph.II ACC inhibitor, for which early encouraging proof-of-concept data were presented from 10 patients. Importantly, […] GS-0976 may not have the lipid liabilities seen with other ACC inhibitors […] and may be under-appreciated by the Street, in our view. We also garnered incremental insights and heard KOL buzz about GILD’s ASK1 inhibitor, selonsertib, which is in Ph.III for treatment of high-risk (F3-F4) NASH and has the potential for registration based on 48-week data. […] Over the next 12 months, we anticipate greater visibility will emerge regarding the competitive profile of GILD’s NASH pipeline and potential timeline for approval/commercialization,” Breedis contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, two-star analyst Katherine Breedis is ranked #2,479 out of 4,557 analysts. Breedis has a 50% success rate and earns 3.7% in her yearly returns. However, when recommending GILD, Breedis loses 8.2% in average profits on the stock.

TipRanks analytics demonstrate GILD as a Buy. Out of 19 analysts polled by TipRanks in the last 3 months, 12 are bullish on Gilead stock and 7 remain sidelined. With a return potential of nearly 20%, the stock’s consensus target price stands at $80.53.

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