JPMorgan analyst Cory Kasimov keeps a Neutral rating on Gilead Sciences with an $85 price target after hosting a call with CFO Andy Dickenson and CCO Johanna Mercier. Gilead has already received “ample market credit” for remdesivir, the COVID-19 drug is unlikely to result in tangible long-term cash flows, and a short-term $5B boost to sales has a marginal impact on the company’s overall valuation, Kasimov tells investors in a research note. Further, the analyst thinks Gilead’s other opportunities for growth will take time to play out. Until more evidence of additional growth drivers emerge, Kasimov is “most comfortable” with a Neutral rating on the shares.
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