Morgan Stanley Reaffirms Overweight on Gilead, Points to HIV Prevention Growth

Morgan Stanley Reaffirms Overweight on $GILD After Meeting With Leadership, Cites Yeztugo Momentum
Morgan Stanley reaffirmed its Overweight rating on Gilead Sciences after meeting privately with CEO Daniel O'Day and Chief Commercial Officer Johanna Mercier at its 2026 Global Healthcare Conference. Gilead trades around $150.89, up about 24% year to date and roughly 111% over five years.
According to the research note, Gilead management described the company as being at "an important inflection point," citing what it called the most robust portfolio in company history, with no patent expiring until 2036. Analyst Terence Flynn has held an Overweight rating on the stock since January 2025.
Yeztugo, Gilead's twice-yearly HIV prevention shot launched in 2025, remains the primary driver of the bullish view. Management guided first full-year Yeztugo sales to approximately $1 billion, with the total prevention portfolio running at about $4 billion annually. More than 70% of Yeztugo patients returned for their six-month reinjection. Current PrEP users number roughly 550,000, more than double 2022 levels, against a CDC-estimated addressable population of about 2.2 million.
Biktarvy, Gilead's flagship HIV treatment, still controls more than 50% of the global market. The company raised its HIV franchise growth guidance to 9%-10% for the year, up from 8%. Beyond HIV, Gilead's cell therapy anito-cel awaits an FDA decision in December, with an estimated initial opportunity of about $3.5 billion in advanced-stage blood cancer patients.
Morgan Stanley flagged risks including unexpected HIV drug competition, pipeline execution issues, and Washington policy uncertainty around drug pricing.