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The analysts pointed to three key factors for the upgrade, which were the company’s best-in-class cell therapy franchise, an improving solid tumor oncology business, and durable growth anchored by the HIV/Virology business.
They stated that Gilead’s cell therapy business has the potential to grow into a multi-billion dollar business by YE2023.
“Core to our revised view of GILD shares is the strong and growing cell therapy business anchored by Yescarta and Tecartus. We highlight the company’s strong manufacturing capabilities as a key differentiator from competition in the CD-19 targeting CART space,” they wrote.
“Gilead’s traditional oncology franchise is starting to get its footing with Trodelvy as the anchor,” the analysts continued, adding that “HIV/Virology, Gilead’s perennial performer will continue to dominate as the business now starts to see its next leg of growth materialize.”
“We think continued growth of the Cell Tx business, coupled with pipeline success could lead to multiple expansion,” they concluded.
