GILD – Market expectations are for Uniform ROA to fall to new lows, and management may have concerns about oncology and partnerships

Gilead Sciences (GILD) currently trades well below corporate averages relative to Uniform earnings, with a 9.5x Uniform P/E (Fwd. V/E’).

At these levels, markets are pricing in expectations for Uniform ROA to fall to new lows of 10%, accompanied by 7% Uniform asset growth.

Meanwhile, analysts expect Uniform ROA to decline to 22% by 2022, accompanied by 20% Uniform asset growth.

If sustained going forward, these levels would imply a stock price closer to $338, representing significant potential equity upside for the firm.

However, the firm’s most recent earnings call suggests management may have concerns about oncology and partnerships.