Piper Jaffray’s Joshua Schimmer and team argue that with shares of Gilead Sciences (GILD) trading at a rock-bottom valuation, “little has to go right…to drive shares higher.” They explain:With a 7x forward multiple, little has to go right with Gilead to drive shares higher, especially in a market environment where other sectors feature ~5% earnings growth names trading with P/E multiples >20x. We believe that ongoing conversion of the HIV business to TAF based therapies, introduction of an FDC comprising of a 1/d unboosted integrase inhibitor with Descovy (TAF/Emtriva) along with stabilization of the HCV franchise will be enough to convince investors that a flattish earnings outlook can drive shares up to a modest 10x P/E multiple (~40% upside). Consensus estimates have essentially no contribution from bictegravir/Descovy, which can extend Gilead’s dominance from the 2-NRTI segment of 3- drug FDCs to the remaining 1/3 of the regimen. Reiterate OW, Gilead is our top large cap pick as a deep value name.