BofA analyst Geoff Meacham maintains a Neutral rating and $72 price target on shares of Gilead, which he believes are higher this morning largely in reaction to positive statements from the World Health Organization that the companys remdesivir may be the only drug right now that may have efficacy in treating the Covid-19 coronavirus. While he "certainly recognizes the optionality of remdesivir," Meacham continues to believe remdesivir offers "little lasting, meaningful P&L upside," the analyst tells investors. The economics of addressing epidemics and pandemics are generally low, said Meachum. He contends that in a best-case scenario where remdesivir is broadly efficacious and widely used, Gilead could receive a one-time revenue boost of about $2.5B, which compares to about a $12B increase in the companys market cap since the start of February. He also continues to have questions about the efficacy of remdesivir given the drug was initially designed to treat Ebola, Meacham added.

Cantor Fitzgerald lowered the firm's price target on Gilead to $75 from $78 and keeps a Neutral rating on the shares. The firm, which made slight adjustments to all of its large-cap biotechnology models ahead of Q1 earnings season for the group, lowered its target for Gilead given slower expected HIV growth. The "usual seasonal headwinds that typically make this one of the weaker quarters for the industry," the analyst added in the preview note.