BMO Capital has raised its one-year price objective for Gilead Sciences (NASDAQ:GILD) to $160.00 from $150.00 while keeping an Outperform rating on the shares. At the time of the note, Gilead was trading at $153.24 and has delivered a 57.42% return over the last 12 months, trading close to its 52-week high of $153.13.
In its analysis, BMO anchored the investment case around Gilead’s HIV franchise, which the firm describes as a continuing central pillar of the company’s outlook. The research team noted that pre-earnings Street assumptions already incorporate strong Yeztugo sales, and suggested that current prescription patterns could make an $800 million Yeztugo sales assumption appear conservative.
The firm also pointed to several balance-sheet and profitability metrics that underscore Gilead’s scale. Gilead carries a market capitalization of $190.44 billion and reported a gross profit margin of 78.72% in the materials referenced by BMO.
BMO acknowledged that management’s guidance landed slightly below consensus for revenues and earnings, characterizing the outlook as a bit "softer." However, the bank framed that conservatism as providing optionality - noting multiple potential paths for upside. The analysts also flagged that in-process research and development (IPR&D) charges likely weighed on the company’s reported earnings figures.
Consistent with its view that underlying fundamentals remain sound, BMO advised investors to consider buying shares on any near-term weakness following the earnings release. The research note highlighted recent positive regulatory and commercial developments - specifically the approval of Anito-cel and the expanding reach of Trodelvy - as supportive drivers for Gilead’s growth trajectory.
Separate company results released for the fourth quarter of 2025 reinforced the constructive analyst tone. Gilead posted adjusted earnings per share of $1.86, narrowly above the forecast of $1.85, and reported revenue of $7.93 billion versus the $7.68 billion consensus. The firm’s product revenues for the period totaled $7.9 billion, a figure the note said topped both Bank of America (BofA) and consensus estimates by roughly 4%.
Following the quarterly results, BofA Securities raised its price target on Gilead to $162 and maintained a Buy rating. Needham also lifted its target to $170, citing robust HIV sales and an 8% sequential increase in product sales as the primary support for its revision. Collectively, these post-earnings moves from multiple brokerages reflect favorable analyst reaction to Gilead’s reported performance.
While BMO sees some conservatism in guidance and acknowledges the accounting impact from IPR&D, its call to buy on dips rests on the combination of a high-margin HIV franchise, early signs of Yeztugo momentum and pipeline or commercial catalysts such as Anito-cel approval and Trodelvy expansion. Investors should weigh these factors alongside the near-term guidance variance when considering positioning.
Summary
BMO raised its Gilead price target to $160 from $150, maintained an Outperform rating, and emphasized the company’s HIV business and Yeztugo trends as core strengths. Gilead’s Q4 2025 results exceeded expectations, prompting higher targets from BofA and Needham.
Key points
- Analyst action - BMO lifts Gilead target to $160 and keeps Outperform; BofA and Needham also raised targets after Q4 results.
- Fundamentals - Market cap of $190.44 billion and gross profit margin of 78.72% underpin the firm’s view of durable economics.
- Earnings beat - Q4 EPS of $1.86 and revenue of $7.93 billion surpassed consensus, driven by the HIV franchise and product revenues of $7.9 billion.
Risks and uncertainties
- Softer guidance - Management’s slightly below-consensus revenue and earnings guidance could limit near-term upside for the stock.
- Accounting impacts - IPR&D charges likely affected reported earnings, introducing variability in near-term profitability metrics.
- Execution sensitivity - Future upside is contingent on prescription trends for Yeztugo and successful commercial expansion of newly approved products.