Gilead (GILD) Defended at Deutsche Bank

Deutsche Bank maintained a Buy rating on Gilead Sciences (NASDAQ: GILD) price target of $142. Analyst Robyn Karnauskas defended the the stock on weakness related to Irish tax changes and comments from Johnson & Johnson (NYSE: JNJ).

"This morning, we are getting a lot of questions around the potential impact of Irish taxes on GILD as well as impact of JNJ comments. While the real impact is hard to quantify, we calculate that if GILD were to pay full Irish tax the impact would be ~$2/sh on DCF basis and today’s stock reaction is overdone. We also note on a macro basis that we think it will take a bit for these tax laws to change (due to grandfathering). As a result, we think all these large cap cos. will have ample time to tax plan before changes are implemented," said Karnauskas.

"On the JNJ call this morning, we heard nothing incremental that would affect our Gilead thesis," she added.

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $101.44 yesterday.

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