Gilead Sciences (GILD) is positioned for moderate upside in 2026, supported by expanding HIV sales, conservative Yeztugo guidance and advancing oncology assets, Morgan Stanley said in a note Wednesday.

The investment firm said it expects Yeztugo, a prescription HIV-1 pre-exposure prophylaxis drug, sales to exceed the $800 million guidance as broader prescriber adoption, buy-and-bill growth and a direct-to-consumer campaign gain traction. It added that Yeztugo has already secured 90% commercial coverage.

Morgan Stanley said Descovy should continue growing in 2026 despite Yeztugo scaling, while Biktarvy continues to gain US share, crossing 52%.

Additional upside is expected from pipeline catalysts, including a potential late-2026 launch of anito-cel in multiple myeloma and a faster Trodelvy ramp following a likely late-2026 approval for first-line triple-negative breast cancer treatment.

HIV pre-exposure prophylaxis market growth remains robust, with 13% year over year expansion in 2025 expected to continue in 2026.

Gilead's cautious acquisition stance and continued $1 billion annual spend on early-stage assets reflect confidence in internal launches and minimal near-term patent risk, according to the note.

Morgan Stanley raised its price target to $171 from $150, with a overweight rating.

Shares of Gilead were up nearly 6% in recent trading.

Price: 155.79, Change: +8.56, Percent Change: +5.81