Deutsche Bank Says Gilead Sciences Stock Reaction Is Overdone

Deutsche Bank issued an alert on Gilead Sciences, Inc. GILD Tuesday following news about Irish tax changes and Johnson & Johnson JNJ comments.

The alert concluded that Tuesday’s "stock reaction is overdone."

According to analyst Robyn Karnauskas, "Ireland announced that they are closing the double Irish tax loophole which allows companies to pay taxes lower than 12.5 percent Irish tax rate."

Karnauskas saw a "2 percent impact on effective tax and $2/sh impact on DCF" as a result of the tax decision.

The alert also indicated that on "the JNJ call this morning, we heard nothing incremental that would affect our Gilead thesis," while "there was some Q&A around Olysio and Gilead’s franchise...the company continues to think that doctors will need multiple combos including Olysio and combos."

Deutsche Bank maintained its Buy Rating and $142 price target.

Gilead Sciences, Inc. recently traded at $97.93, down 3.5 percent.