By Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $155.00 and a stop-loss of $128.00.
Gilead Sciences is a research-based biopharmaceutical company that develops and commercialises innovative therapeutics/medicines for serious and life-threatening diseases. The company's primary areas of focus include HIV, AIDS, liver disease, and serious cardiovascular and respiratory conditions. It has also expanded its operations into oncology, inflammatory diseases and cell therapy through its Kite subsidiary.
The group generates revenue primarily from its portfolio of prescription medicines, supported by continued investment in clinical research, strategic partnerships and acquisitions. Its established HIV franchise remains central to the business, while oncology and inflammation provide important opportunities for longer-term growth and diversification.
Technically, the in-house AI model's forecast supports the profit target and presents an attractive buying opportunity (see the insert on the main chart). This model analyses seven years of historical price and volume data, together with trend, momentum and volatility indicators, to estimate the stock's potential price trajectory across several time horizons. Our proposed $155.00 profit target falls between the three- and six-month forecasts of $133.71 and $162.22, respectively.
Fading downside price momentum according to the Moving Average Convergence Divergence (MACD) histogram and the recent upside trajectory of the on-balance volume (OBV) indicator supports the bullish stance.
Share performance
Share information
| Share Code | GILD US |
| Industry | Pharmaceutical, Biotechnology |
| Market Capital (USD) | 169.89 |
| One-Year Total Return | 17.14% |
| Return Year-to-Date | 13.00% |
| Current Price (USD) | 137.01 |
| 52-Week High (USD) | 157.29 |
| 52-Week Low (USD) | 108.46 |
| Financial Year End | December |
| The share price is has delivered double-digit growth in the past 12 months and in 2026, with several technical indicators guiding for further upside potential. | |
Consensus expectations (Bloomberg)
| FY25 | FY26E | FY27E | FY28E | |
|---|---|---|---|---|
| Headline Earnings per Share (USD) | 8.15 | -0.43 | 9.84 | 10.52 |
| Growth (%) | -105.25 | 2.38 | 6.94 | |
| Dividend Per Share (USD) | 3.16 | 3.28 | 3.37 | 3.50 |
| Growth (%) | 3.89 | 2.50 | 4.07 | |
| Forward PE (times) | 13.93 | 13.03 | ||
| Forward Dividend Yield (%) | 2.40 | 2.46 | 2.56 | |
| Earnings are expected to decline in FY26, driven primarily by large, one-time acquired in-process R&D (IPR&D) charges from recent acquisitions, not underlying business deterioration. However, the company is set to deliver strong double-digit earnings growth over the medium term. | ||||
Buy/sell rationale
Fundamental view
Update on previous trade ideas
| Share Name and position | Entry | Current Price | Movement | Comment | Time to exit |
|---|---|---|---|---|---|
| VMC - Buy (Continue to hold) | 268.94 | 287.79 | +7.0% | The combination of supportive long-term trend dynamics, improving momentum conditions and favourable mean-reversion characteristics remains of interest. Remains just below its 200-day simple moving average (SMA). Fading downside momentum is supportive. Our profit target is maintained at $314.00 with a trailing stop-loss at ~$275.00. | 19 August 2026 |
| SYK - Buy (Continue to hold) | 329.74 | 348.15 | +5.6% | The price at the lower range of an inclining linear regression channel pattern remains of interest. Testing its 200-day SMA. Upside momentum is supportive. Our profit target is maintained at $401.00 with a trailing stop-loss at $338.00. | 14 October 2026 |
| DD - Buy (Continue to hold) | 140.77 | 144.49 | +2.6% | The price at the start of wave 5 out of the Elliott Wave Price Theory remains of interest. Remains above its 200-day SMA. Fading downside momentum is supportive. Our profit target is maintained at $170.00 with a trailing stop-loss at $136.00. | 7 October 2026 |
| TSN - Buy (Continue to hold) | 58.74 | 58.04 | -1.2% | The price in a developing inclining channel pattern remains of interest. Remains wedged between its 200-week SMA support and its 200-day SMA resistance. Downside momentum is a concern to the trade idea. Our profit target is maintained at $69.00 with a trailing stop-loss at $55.00. | 7 October 2026 |
