Shares of Gilead Sciences Inc.
GILD,
+1.02%
rallied 3.2% in premarket trading Tuesday, after the biopharmaceutical company was upgraded at J.P. Morgan, which cited greater clarity on the human immunodeficiency virus (HIV) IV franchise and an emerging and undervalued oncology, or cancer treatment franchise. Analyst Christopher Schott raised his rating to overweight, after being at neutral for at least the past 2 1/2 years, while raising his stock price target to $80 from $72. “At current levels, we see GILD’s HIV business alone supporting the stock’s entire market cap,” Schott wrote in a note to clients. “And with an oncology franchise that we forecast to reach ~$5 billion in sales by 2030 as well as potential upside to lenacapravir estimates over time, we see shares as clearly undervalued at current levels.” The stock has lost 14.2% year to date through Monday, while the iShares Biotechnology ETF
IBB,
+1.95%
has dropped 21.9% and the S&P 500
SPX,
+2.59%
has lost 22.8%.