GILD – Market expectations are for Uniform ROA to fall to new lows, and management may have concerns about oncology and partnerships
December 16, 2021
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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.
