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Gilead Sciences Stock: Analysts’ Recommendations

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Analysts’ recommendations

In October, of the 28 analysts covering Gilead Sciences (GILD), 18 analysts gave the stock a “buy” or higher rating, while ten analysts gave the stock a “hold” rating. The mean rating for Gilead Sciences stock is 2.14 with a target price of $87.96, which implies an upside potential of 14.9% over the company’s closing price of $76.56 on October 4.

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Peers’ ratings

Analysts gave Bristol-Myers Squibb (BMY), Merck (MRK), and Pfizer (PFE) mean ratings of 2.47, 2.0, and 2.63, respectively, and target prices of $59.82, $73.04, and $42.61, respectively.

Valuation metrics

From a high of $89.54 on January 29, Gilead Sciences stock corrected to $64.88 on May 7. As a result, Gilead Sciences shares have been gaining steadily and reached the current price levels of $77 in October.

Gilead Sciences’ enterprise value is $100.09 billion, while its enterprise value-to-revenue ratio is 4.32. The stock is trading at a forward PE multiple of 11.62x. Gilead Sciences’ price-to-sales ratio is 4.28, while its price-to-book value ratio is 4.58.

Gilead Sciences’ current ratio, a metric of how effectively a company can meet its short-term obligations, stands at 3.0. In comparison, Bristol-Myers Squibb, Merck, and Pfizer’s current ratios stand at 1.40, 1.30, and 1.20, respectively. The ratios show that Gilead Sciences is in a better position to satisfy its short-term obligations than its peers.

Gilead Sciences’ price-to-free cash flow ratio stands at 17.83. Bristol-Myers Squibb and Pfizer’s price-to-free cash flow ratios are 66.86 and 31.71, respectively.

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