Gilead stock price ‘does not’ reflect its oncology business: Analyst

Gilead Sciences Inc (NASDAQ: GILD) ended in the green on Tuesday after a JPMorgan analyst turned bullish on the biopharmaceutical company.

Gilead stock should be worth $80 a share

Chriss Schott now rates this healthcare name at “overweight” and sees upside to $80 a share – about a 25% increase from here.

One of the more obvious reasons why he likes Gilead Sciences is its HIV franchise. The analyst wrote:

Schott sees big future for Descovy as well.

In August, the biotech company reported market-beating results for its fiscal second quarter. Gilead stock is down about 10% for the year.

Gilead Sciences has a tempting dividend yield

The Nasdaq-listed firm also has an emerging “oncology” business, which, as per the JPMorgan analyst, is entirely not reflected in the current stock price.

Healthcare stocks are known to do well in a recession that’s likely coming. “That” with a rather lucrative 4.47% dividend yield makes it all the more attractive to buy Gilead stock here.

Shares are currently trading well below the average of their price-to-earnings multiple over the past five years.