Impact of Drug Pricing Deals: Big pharmaceutical companies are negotiating with the U.S. government to lower Medicaid drug prices, but analysts believe the financial impact on these companies may be less severe than initially feared.
Medicaid's Role in Drug Pricing: Medicaid accounts for about 10% of U.S. prescription drug spending and often secures significant discounts, which helps mitigate concerns over pricing pressures on pharmaceutical companies.
Resilience of Health Care ETFs: Diversified health care ETFs, such as the Health Care Select Sector SPDR Fund and Vanguard Health Care ETF, are performing well and provide a buffer against potential volatility from drug pricing news.
Pharma-Specific ETFs and Diversification: While specialized pharmaceutical ETFs may face more direct impacts from pricing negotiations, their diversified structures help reduce risks associated with individual companies, allowing them to remain stable amidst market fluctuations.
Wall Street analysts forecast GILD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GILD is 137.88 USD with a low forecast of 105.00 USD and a high forecast of 154.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast GILD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GILD is 137.88 USD with a low forecast of 105.00 USD and a high forecast of 154.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 129.110
Low
105.00
Averages
137.88
High
154.00
Current: 129.110
Low
105.00
Averages
137.88
High
154.00
BofA
Buy
maintain
$144 -> $154
2026-01-09
Reason
BofA
Price Target
$144 -> $154
AI Analysis
2026-01-09
maintain
Buy
Reason
BofA raised the firm's price target on Gilead to $154 from $144 and keeps a Buy rating on the shares. The firm, which switched its valuation method, says the company's "steady" HIV franchise growth remains core to its Buy thesis as it sees upside from recent and upcoming launches.
UBS
Michael Yee
Neutral -> Buy
upgrade
$112 -> $145
2026-01-07
Reason
UBS
Michael Yee
Price Target
$112 -> $145
2026-01-07
upgrade
Neutral -> Buy
Reason
UBS analyst Michael Yee upgraded Gilead to Buy from Neutral with a price target of $145, up from $112, after assuming coverage of the name. The firm cites its expectations for "strong" HIV pre-exposure prophylaxis sales from Yeztugo for the upgrade. This should drive revenue and earnings upside as well as increasing confidence in Gilead's outer-year growth, the analyst tells investors in a research note.
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Citi
Geoff Meacham
Buy
maintain
$135 -> $140
2026-01-07
Reason
Citi
Geoff Meacham
Price Target
$135 -> $140
2026-01-07
maintain
Buy
Reason
Citi analyst Geoff Meacham raised the firm's price target on Gilead to $140 from $135 and keeps a Buy rating on the shares.
Morgan Stanley
Overweight
maintain
$147 -> $151
2025-12-12
Reason
Morgan Stanley
Price Target
$147 -> $151
2025-12-12
maintain
Overweight
Reason
Morgan Stanley raised the firm's price target on Gilead to $151 from $147 and keeps an Overweight rating on the shares. The firm expects many of the policy overhangs that dominated the biopharma conversation this year to wane in 2026, bringing the focus back to fundamentals, the analyst tells investors in a 2026 outlook note for the group.
About GILD
Gilead Sciences, Inc. is a biopharmaceutical company. It is engaged in advancing medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer, and inflammation. It is focused on discovering, developing, and delivering medicines to address unmet medical needs in virology, oncology, and other therapeutic areas. Its portfolio of marketed products includes Biktarvy, Genvoya, Descovy, Complera/Eviplera, Symtuza, Truvada, Stribild, Sunlenca, Epclusa, Vemlidy, Harvoni, Viread, Livdelzi, Veklury, Yescarta, Tecartus, Trodelvy, AmBisome, and Letairis. Its product candidates include Bulevirtide, Lenacapavir, Axicabtagene ciloleucel, Sacituzumab govitecan-hziy, and others. It also develops the HB-400 program and the HB-500 program. It develops therapies that are intended to provide functional cures for hepatitis B virus and human immunodeficiency virus-1. It has a cancer program, namely TREX1. It operates in more than 35 countries worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
